Crypto and stock markets recover as the U.S. Senate passes the Biden-McCarthy debt ceiling deal, with President Joe Biden to sign the deal and address averting debt default and the bipartisanship budget agreement tomorrow. The global crypto market cap increased 1.31% to 1.14 trillion on Friday. Bitcoin price rallied over 2% to hit a 24-hour high of $27,203, while Ethereum price also jumped over 2% to almost $1900.
The market expects the US nonfarm payrolls increased by 190,000 jobs in May, far lower than 253,000 in April. The unemployment rate is also expected to be higher in May, with consensus showing 3.5%. The ISM manufacturing data on Thursday also showed manufacturing activity contracted for the 5th consecutive month and price pressures eased significantly.
These macro factors will potentially allow the US Federal Reserve to “skip” an interest rate hike this month for the first since maintaining its hawkish approach for more than a year. Fed Governor Philip Jefferson and Philadelphia Fed President Patrick Harker suggested this week the central bank would skip a rate hike in June.
According to the CME FedWatch Tool, there’s a 70% probability of the Fed keeping its policy rate unchanged. Fed Chair Jerome Powell also hinted at a possible pause in June.
As a result of US debt ceiling deal and Fed eyeing to skip a rate hike, the benchmark treasuries and the US dollar dipped today with US Dollar Index (DXY) falling below 103.50 from a high of 104.50 this week.
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Bitcoin and Ethereum Price Rally
The global stock market rallied on cues from the US debt ceiling deal and Fed pause talks, with all global stock indices expect to close green on Friday.
BTC price currently trades at $27,145, with a 24-hour low and high of $26,574 and $27,203, respectively. Altcoins followed suit and rose higher, with ETH price trading 2% higher at $1,891.
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