Bitcoin (BTC) is currently consolidating in familiar ranges just below the $29,000 mark ahead the release of the United States job market data set to be revealed on Friday. Most market players yearned for a 25 basis point rate hike from the United States Federal Reserve that came on Tuesday, which followed a stretch of 500 basis points- worth of tightening in its past 10 meetings. BTC saw little changes in the wake of this event, staying in an area ranging from $27,000 to $31,000 for March.

The dilemma traders face is whether or not a dip or climb back above $30,000 is looming. Fortunately, traders have help from a key asset class - that being the US Treasuries. While the job market is expected to remain stable, some signals are starting to point the opposite direction, like the US JOLTs survey that showed openings falling to two-year lows.

Simultaneously, the manufacturing industry has been in a state of contraction and the rate hikes from the central bank are beginning to take hold. Following the First Republic bank failure, other smaller banks’ stocks have been dropping, leading to a decrease in lending, a crucial part of the economy, and raising the possibility of a recession.

In this atmosphere of a slowing economy, fall in yields has followed with the 2 year mark dropping to one-month lows beneath 3.7%, the 5-year hitting the lowest points since last September close to 3.2%, and the 10-year threatening to break below 3.3% support. Therefore, rising unemployment and weakening US dollar value would be favorable backdrops for cryptocurrencies such as Bitcoin, as toughening financial conditions have historically left its mark in the digital currency. It can also count on becoming a safe haven choice as fiat currency stability worries accumulate.

In addition, if the predicted downtrend in US yields and depreciation in fiats values come into fruition, it may point towards a Bitcoin price Pump in the near future instead of another bear market.



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