Analysts: The easing of inflation is expected to rekindle expectations for interest rate cuts, and today's non-farm and employment data weakness will boost Bitcoin rise.

In a May 2 report, BRN principal research analyst Valentin Fournier noted in a May 2 note that the slowdown in inflation has rekindled market expectations for a Fed rate cut despite mixed macroeconomic performance. "With inflation trending closer to the Fed's 2% target, expectations of multiple rate cuts are strengthening, which could trigger a new round of liquidity injections, and alternative risk assets such as cryptocurrencies will benefit more than stocks that may be dragged down by the economic slowdown." Mike Cahill, CEO of Douro Labs, said that the U.S. jobs report, which covers non-farm payrolls, unemployment and wage growth, may indicate the Fed's next interest rate decision. Data earlier this week showed that the private sector added 62,000 jobs in April, down from March levels. Cahill said that if Friday's data is weak again, bitcoin prices could climb again as interest rate cut expectations increase. "Institutions are keeping a close eye on these macro signals, as Bitcoin is no longer seen purely as a risk asset – it is now becoming a macro tool for interest rate sensitive, global transactions, which was originally designed to be."