Financial markets continued to rise on Thursday.
Data released by the U.S. Department of Labor showed that the number of first-time unemployment claims in the United States in the week ended September 21 was 218,000, the lowest since May and lower than expected, indicating that the labor market is resilient. At the same time, durable goods orders were flat in August, breaking the expectation of a decline, and GDP in the second quarter remained stable at 3%. These data strengthened investors' confidence in the fundamental strength of the U.S. economy.
According to Bitpush data, with risk appetite returning, Bitcoin bulls successfully broke through $65,000, hitting a high of $65,887 in the afternoon before falling back slightly. As of press time , Bitcoin was trading at $65,235, up 2.84% in 24 hours.
Most Altcoin markets continue to rise among the top 200 coins by market cap.
The biggest gainer was Shiba Inu (SHIB), up 21%, followed by Ethena (ENA), up 17.5%, and Wormhole (W), up 16.6%. Hamster Combat (HMSTR) led the decline, falling 31.3%, Bittensor (TAO) down 6.1%, and Baby Doge Coin (BabyDoge) down 5.1%.
The current overall market value of cryptocurrencies is $2.29 trillion, and Bitcoin’s market share is 56.3%.
At the close of the day, the S&P 500, Dow Jones and Nasdaq all rose, up 0.40%, 0.62% and 0.60%, respectively.
Bitcoin and PCE Report
Arman Shaban, an analyst at TradingView, noted: “Given that Bitcoin recently rose on the weekly chart and reached the expected $65,000, strong support was found at $52,750 and the price did not fall below $49,000. In this case, Bitcoin’s short-term targets are $67,700 and $71,800. In addition, according to previous analysis, Bitcoin’s medium-term target is $80,000.”
Tomorrow we will see the release of the Core PCE Price Index (Personal Consumption Expenditures) report, which directly impacts the Federal Reserve’s monetary policy decisions.
“If the core PCE data comes in line with expectations (0.2%) or even lower, the market may feel less pressure for rate hikes, which will favor riskier assets such as Bitcoin as investors facing controlled inflation and looser monetary policy will turn to digital and riskier assets,” Shaban said.
Shaban said that if core PCE moves in line with expectations, Bitcoin could “continue its upward trend and reach short-term targets of $67,700 and $71,800. In the medium term, as inflation concerns ease and interest rates stabilize, Bitcoin could strengthen further, potentially reaching the $80,000 level.”
However, if the core PCE data exceeds expectations, indicating higher-than-expected inflation, the Fed may decide to implement more aggressive tightening measures, Shaban warned: "This could push the dollar higher and put short-term pressure on risk assets such as Bitcoin. In this case, Bitcoin may experience some downside volatility, with potential support at $62,000 and $60,000. Given Bitcoin's strong fundamental demand and technical factors, such volatility may be temporary, and Bitcoin is expected to eventually resume its upward trajectory."
Based on some of the economic data released so far, the most likely scenario is that core personal consumption expenditures are flat or lower than expected, which may provide further upward momentum for the cryptocurrency market.
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