Bitcoin and most altcoins embarked on a crypto rally on Wednesday, July 2, as the Fear and Greed Index rose following the release of weak job numbers. BTC jumped to near $110,000, while top altcoins like Cardano (ADA) and Pepe jumped by over 10%. Let’s explore why these coins are going up.
Crypto Rally Restarts as Fear and Greed Index Rises
The ongoing crypto rally is occurring as the Fear and Greed Index has moved into the greed zone, at 63. Historically, the crypto and stock markets tend to perform well when the index reaches a greed level. This explains why the Nasdaq 100 and S&P 500 indices have jumped to their highest levels on record.
This crypto rally began after ADP published a weak jobs report, which showed that the economy shed 33,000 jobs in June, following an addition of 29,000 jobs in the previous month. After the report was released, Microsoft announced that it would be laying off over 9,000 workers, primarily in its Xbox division.
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In many cases, weak economic numbers are typically bullish for the stock and crypto markets because they increase the likelihood of the Federal Reserve slashing interest rates. In this case, some analysts expect that the Fed may cut rates as early as this month.
Jerome Powell, speaking in Portugal on Tuesday, did not rule out a rate cut this month if inflation falls and the labor market deteriorates.
Stocks and the crypto market will react to the upcoming official nonfarm payrolls data. Economists expect the official data to show that the economy created over 100,000 jobs. A strong NFP report may trigger a reversal of the crypto rally.
Bitcoin Price Technicals Contributed
BTC and altcoins like Pepe and Cardano are rising due to the former’s strong technical indicators. The chart above shows that the coin formed a bullish flag pattern, which often leads to more gains. It has now formed a bullish engulfing candle and moved above the upper side of the flag.
At the same time, the coin formed a cup-and-handle pattern, a common continuation pattern in technical analysis. Therefore, a combination of the flag and C&H patterns suggests further gains, potentially reaching $120,000 in the long term.
Altcoins like Bitcoin Pepe, Cardano, and Pepe often do well when BTC is in a strong bull run.
BPEP is Gaining Momentum
Listed cryptocurrencies are not the only ones in a strong bull run. Bitcoin Pepe, a crypto project currently in its presale, gained momentum as altcoins surged.
BPEP has raised over $16 million from investors, a trend that has accelerated following the developers’ unveiling of some tier-1 exchanges that will list it. They are BitMart, MEXC, and Uniswap, with more expected to be revealed later this month.
Bitcoin Pepe is also doing well because it is a highly disruptive project that aims to create a new era of meme coins. It will achieve this by creating a Bitcoin layer-2 project that focuses solely on meme coins.
By launching a layer-2 chain, it aims to replicate the success of other similar projects, such as Arbitrum and Base. BPEP has also gained traction due to the 30% bonus that developers are offering. Learn more about BPEP here.
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