The Bitcoin price made a strong bullish breakout on Sunday.
The coin jumped above $51,000 for the first time in weeks.
The bullish trend will likely remain in the near term.
The Bitcoin (BTC/USD) price launched higher on Monday as the consolidation phase came to an end. The coin jumped to more than $51,000, pushing its total market capitalization to more than $972 billion. As a result, the combined market cap of all cryptocurrencies tracked by CoinMarketCap jumped to more than $2.33 trillion.
Cryptocurrencies reboundAfter two weeks of consolidation, the price of Bitcoin and other cryptocurrencies rebounded in the overnight session. While BTC jumped to more than $51,000, other popular digital currencies rose as well. Ethereum rose to more than $3,900 while Cardano and Solana rose to more than $2.90 and $142 as well.
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There were several key catalysts for the latest Bitcoin price rally. First, on Friday, the US published relatively weak economic numbers. The data showed that the countrys economy added more than 235k jobs in August. This was substantially lower than the median estimate of 750k and was the lowest figure in months.
The US jobs numbers signalled that the labour market growth was easing. Still, other numbers showed that the economy was doing modestly well. For example, the unemployment rate declined to 5.2%, the lowest level since the pandemic started. At the same time, wages grew by 4.3% while the participation rate remained at 6.7%.
Still, the slower additions meant that the Fed will likely have a wait-and-see attitude before starting to tighten. In his statement at the virtual Jackson Hole Symposium, Jerome Powell said that that the Fed would likely watch over the impact of the Delta variant before tightening.
Second, the BTC price rallied as optimism among traders remained steady. Besides, the price has managed to rise from below $30,000 in the past few months to more than $50,000. Therefore, the recent consolidation was a calm-before-the storm in the industry.
