Bitcoin Dips As Strong US Jobs Report May Indicate More Fed Rate Hikes• October 8, 2022 12:52 pm • Comments
Currently, the price of Bitcoin is hovering around the $19.5k mark and many investors are now speculating on whether or not the bear market has finally reached its bottom.
Other major digital assets like Solana and Litecoin have also followed similar price action in the recent couple of months and the market cap of the total crypto market is now below $1 trillion.
There is still strong interest in the crypto space as it continues to gain more utility and also is increasingly popular as an alternative asset class that could potentially be used to diversify risk.
The new jobs report has indicated that the economy has added a large amount of jobs and that the unemployment rate is around 3.5% which indicates strength.
With this strength, many are concerned that this will cause the Fed to continue even more rate hikes which may affect all the markets.
Bitcoin Drops as Strong Jobs Data Seen Keeping Fed on Rate-Hike Path https://t.co/FZPuii31FS
— #CORE (@RISHABH72887707) October 8, 2022
The fresh reversal comes on the heels of the U.S. Labor Department’s September job report, which showed the American economy added another 263,000 new jobs, with the unemployment rate ticking down 0.2 percentage points to 3.5%.
Though job growth slowed compared to the 315,000 increase in August, showing the lowest monthly increase since April 2021, the U.S. economy is still strong.
This strength likely increases the odds of more aggressive monetary policy tightening ahead of the Fed’s next meeting in November.
U.S. Treasury yields jumped following the data release, as opposed to stocks that opened lower on Friday.
“This puts the nail in the coffin for another 75 [basis point rate increase] in November,” Jeffrey Roach, chief economist at LPL Financial, told CNBC.
With that being said, the overall crypto market continues to show stability despite the possibility of even more rate hikes
This stability make indicate that crypto prices could possibly be at a turning point as it has not revisited new lows the same way that the equities market has experienced with the anticipation of more rate hikes.
This is at least considered a step towards improvement given that the market is still in a bearish environment.
Traditionally, crypto has been affected the most by rate hike fears so the current status of the market seems promising.
Bitcoin Tumbles Hard After US Jobs Data, Probability Of 75 Bps Fed Rate Hike Jumpshttps://t.co/5gTO8pWHwN
— Islet Crypto (@IsletCrypto) October 8, 2022
Cox also highlighted the resilience of crypto assets in the second half of the year, noting that while stocks have revisited new lows with the spike in bond yields, bitcoin and ether haven’t done the same.
Bitcoin has been trading in a tight range of between $18,000 and $25,000 since falling to its lows of the year in June.
“To me, that’s progress in this bear market,” Cox said. “Crypto prices could be telling us the rate anxiety could be at a turning point. Crypto’s strength is also a good indicator of frothiness in the market.
It seems like the brutal growth selloff has finally washed out all the weak hands.”
“Bitcoin is also far below its highs too,” she added. “But stability is a step in the right direction.”
Positive US Jobs Reports Fuels Another Fed Rate Hike, Bitcoin Dips #crypto #cryptonews #thedailyencrypt #blockchain #DeFi #NFT #news #cryptobloghttps://t.co/6GzCZhVk2w
— Vitalik Ivanov (@Vitalik1Ivanov) October 7, 2022
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