Bitcoin (BTC) Surges to $97,000, Wiping Out Short-Term Losses

Bitcoin, the first and largest cryptocurrency by market capitalization, kicked off May on a positive note, reaching its highest level since late February as investors' appetite for risk was rekindled across financial markets. The leading cryptocurrency asset posted a strong surge on May 1, printing a significant green daily candlestick following two straight days of decline at the start of the week. Bitcoin increased from a low of $94,115 to $97,483, its highest since Feb. 21. Bitcoin has recovered almost 21% from its February low of $78,900 and roughly 28% from its early April low of $75,000. The rebound was sustained in early Friday's session. At press time, BTC was up 0.24% in the last 24 hours to $96,903, after reaching intraday highs of $97,059. Bitcoin has reversed its weekly losses and is now up 2.49% in the last seven days. Bitcoin recent buyers in profit Bitcoin's latest price jump to $97,000 has restored profitability for a key segment of the market: short-term holders (STHs). According to on-chain analytics firm Glassnode, the cost basis ribbon for short-term holders shows that investors holding BTC for over one month have returned to profit. This remains significant for a few reasons. The cost basis ribbon for Short-Term Holders shows that investors holding $BTC for over 1 month have returned to profit. This shift eases sell pressure from older STHs and may signal early signs of positive market momentum if maintained. pic.twitter.com/e0mt0vCzXw According to Glassnode, this shift eases sell pressure from older short-term holders (STHs) and may signal early signs of positive market momentum if sustained. On the macroeconomic front, nonfarm payrolls rose by a seasonally adjusted 177,000 for the month, somewhat lower than the downward-revised 185,000 in March but more than the Dow Jones estimate of 133,000. However, the unemployment rate remained at 4.2%, as projected, showing that the job market is generally stable. The report comes just ahead of next week’s Federal Reserve policy meeting scheduled for May 6 and 7. Markets broadly expect the Fed to keep its benchmark short-term borrowing rate unchanged at the meeting, while they are pricing in a quarter-point decrease in June, with two or three more to come by the end of the year.