Coinbase Global Head of Investment Research David Duong said that the US-Iran ceasefire provided markets with a valve to help, not return everything, as Bitcoin price above $73,000.
The two-week deal sent oil into the low $90s and set off a bullish rally. However, Duong argued that the obstacles created by the war were not over.
Why the Fire Prevention Meeting May End
BTC was sales of $73,085 as of this writingup by 3% in the last 24 hours between dangerous thoughts following the temporary US-Iran standoff.
However, major tensions between the US and Iran remain unresolved. Shipping companies still require safety guarantees. The Strait of Hormuz may be partially reopened at first.
At this time, a The CPI report was released on Friday showed oil prices rose 21.2% in March. The Bureau of Labor Statistics confirmed that this was the largest monthly increase since it began tracking data in 1967.
Headline CPI rose to 3.3% year-on-year, up from 2.4% in February.
Labor Data Increases Pressure on the Fed
Nonfarm payrolls rose by 178,000 in March, nearly triple the consensus of 65,000. On top of that, it helps the Federal Reserve keep interest rates high.
However, Mr. Duong noted that staff participation was low at 61.9%. Wage growth slowed to 3.5% annually. Previous payment records have also always been revised downwards.
This leaves the Fed in a difficult middle ground, according to Duong. Growth is slower than the headline figures suggest, but it is not weak enough to justify an imminent rate cut as war-related risks continue.
Duong identified $84 as an important oil level to watch. A sustained break below that limit would indicate a drop in inflation and increase the chances of an early settlement.
If oil recovers and stays above $100, the markets will begin to place long-term prices and pressure on risky assets, including BTC.
Friday’s peace talks between the U.S. and Iran may determine whether this strategic alliance continues or changes.
A note Bitcoin Hits $73,000 Amid Ceasefire Rally, But Coinbase CEO Issues Warning appeared for the first time BeInCrypto.
