While the cryptocurrency market was expecting a strong recovery from last week’s $60,000 levels, Bitcoin (BTC) surprised investors today by falling below $67,000 again.
Macroeconomic uncertainty and the suspension of regulations in the US are increasing pressure on digital assets.
Renowned market strategist Peter Cheer, speaking on Scott Melker’s show, stated that the latest US employment report offered a “deceptive” optimism. Despite a larger-than-expected increase of 130,000 jobs, Cheer argued that the government’s seasonally adjusted models no longer reflect the realities of the economy.
Cheer pointed out that markets were being misled by inaccurate data, saying, “In January, there were actually 2.65 million job losses, but seasonal adjustments make these figures appear positive on paper. The government is quite inadequate in collecting data; outdated calculations are being used instead of real-time data.”
Cheer, evaluating Bitcoin’s recent weak performance, stated that he agrees with the view that the “era of speculation” in the market may be coming to an end. Noting that Bitcoin has begun to behave like a traditional asset and that its correlation with gold is not working as expected, the expert said, “Marginal buyers have withdrawn from the market. Bitcoin’s price movements are not inspiring confidence at the moment.”
Scott Melker, highlighting Bitcoin’s return to its price levels during Donald Trump’s election campaign, stated that the market had already priced in regulatory moves like the Clarity Act, but the failure of these laws to pass was disappointing.
One of the most striking details of the news was the revelation that the giant investment bank Goldman Sachs holds $1.1 billion worth of Bitcoin and $1 billion worth of Ethereum on its balance sheet. While Peter Cheer described this move by a conservative institution like Goldman as “an important signal for the sector,” he also reminded that these figures are still a small fraction of the bank’s total holdings, perhaps just a “rounding error.”
Peter Cheer predicts that Bitcoin could move horizontally between $55,000 and $75,000 for the next six months. On the other hand, he expects three interest rate cuts by September under pressure from the Trump administration, adding that markets have not yet fully accepted this aggressive rate-cutting process.
*This is not investment advice.
