Bitcoin and XRP Fluctuate Following Mixed U.S. Jobs Report
Bitcoin briefly surpassed $100,000 before a decline to $98,320 following a mixed U.S. jobs report showing lower unemployment. XRP and Ethereum also rose and fell, with XRP experiencing a 7% daily increase but remaining down 19% over the week. The Labor Department report indicates strong wage growth and hints that the Federal Reserve may not cut rates soon, impacting consumer spending and market dynamics.
On Friday morning, New York time, Bitcoin surged above $100,000 following the release of a mixed U.S. jobs report, which indicated a decrease in unemployment paired with sluggish job growth within the world’s leading economy. Nevertheless, Bitcoin has since dropped, trading at $98,320, reflecting a modest 1% increase over the preceding 24 hours, as reported by CoinGecko.
Other significant digital currencies, including XRP and Ethereum, experienced a similar trend, initially rising before declining. Currently, XRP is priced at $2.47, while Ethereum stands at $2,751. Despite XRP’s impressive 7% gain over the last day after a midweek dip, it remains down 19% for the week.
The Labor Department’s report highlights notable wage growth from the previous month, suggesting that consumer spending may continue to be robust. The recent drop in unemployment from 4.1% to 4% implies that the Federal Reserve might refrain from cutting interest rates in the near future, as low unemployment typically correlates with increased consumer spending and higher prices.
In 2024, the Federal Reserve enacted three interest rate cuts following the raising of borrowing costs to their highest levels in two decades during 2022, aimed at curbing inflation. Subsequently, the cryptocurrency market and U.S. equities surged in response to the Fed’s decision to lower borrowing costs, which benefits riskier asset classes.
Bitcoin has faced heightened volatility recently due to President Donald Trump’s tariff threats against major economies, including a pause in tariffs on Mexico and Canada while imposing tariffs on China. Additionally, an AI-related tech selloff last week exerted further pressure on the cryptocurrency markets.
Currently, the entire cryptocurrency market has seen a decrease of nearly 1% over the past day, bringing its total market capitalization to approximately $3.35 trillion.
The article discusses the recent fluctuations in Bitcoin and other cryptocurrencies following the release of a U.S. jobs report, which included both positive and negative indicators. The jobs report showed a drop in unemployment but indicated a slowdown in job growth, influencing market reactions. The performance of cryptocurrencies like Bitcoin, XRP, and Ethereum is closely linked to macroeconomic factors such as Federal Reserve interest rate decisions and labor market conditions. Moreover, geopolitical tensions and technological market fluctuations also affect the cryptocurrency landscape.
In summary, Bitcoin and other cryptocurrencies experienced an initial surge following a positive jobs report, although they faced subsequent declines due to uncertainty surrounding interest rates and geopolitical factors. Increased wage growth and declining unemployment suggest a robust consumption outlook, yet the Federal Reserve’s monetary policy will heavily influence market conditions. Overall, the volatility witnessed in the cryptocurrency market reflects broader economic trends and geopolitical developments.
Original Source: decrypt.co
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