Bitcoin Surges as Unemployment Claims Rise – A Market Analysis
Cryptocurrency markets exhibited an upward trend on Thursday morning, even in the face of recently released U.S. employment data that indicated an increase in unemployment claims. According to the U.S. Department of Labor (DoL), the number of individuals applying for unemployment benefits rose to 232,000 for the week ending August 17, marginally surpassing the Dow Jones estimate of 230,000. This increase in claims did not hinder the performance of Bitcoin (BTC), which experienced a 3% rise over the last 24 hours. Ethereum (ETH) also climbed by 2%, alongside Polkadot (DOT) and Solana (SOL), both of which registered a similar 2% gain.
Among the top 100 cryptocurrencies, the meme coin FLOKI (FLOKI) emerged as the most significant gainer, displaying a remarkable increase of 14%. The Artificial Superintelligence Alliance (FET) followed closely with a 12% rise, and Fantom (FTM) rose by 10%. Conversely, Helium (HNT), Tron (TRX), and Aave (AAVE) faced declines ranging from 3% to 5%.
On the previous day, the minutes from the Federal Reserve’s July meeting revealed a sentiment among various members advocating for a potential reduction in the key interest rate at the upcoming September meeting, contingent upon favorable data trends. Market participants are now closely observing Federal Reserve Chair Jerome Powell’s speech scheduled for the Jackson Hole Economic Symposium on Friday, with expectations of further insights into forthcoming monetary policies.
Trading firm QCE Capital highlighted that the overnight downward revision of U.S. non-farm payrolls brought attention to a weakening labor market, stirring concerns about the possibility of delayed rate cuts by the Federal Reserve, which precipitated a market sell-off. However, those apprehensions began to dissipate following the release of the July FOMC minutes, which indicated that certain policymakers were inclined towards a dovish approach regarding rate cuts. This shift in tone positively influenced risk assets, thus propelling Bitcoin’s price above $61,800, spurred by substantial buying activity on Coinbase until 4 a.m. SGT. The firm noted that the aggressive bids on Coinbase serve as a robust indicator of short-term market trends and U.S. onshore demand.
In contrast, U.S. stock markets experienced a downturn on Thursday. The Dow Jones Industrial Average declined by 0.4%, while S&P 500 futures dropped by 0.8% and the Nasdaq-100 sank by 1.7%. Meanwhile, major Asian stock markets performed positively during Wednesday’s trading session, with Japan’s Nikkei 225 rising by 0.68%, Taiwan’s Taiex advancing by 0.85%, and Hong Kong’s Hang Seng increasing by 1.40%. Australia’s All Ordinaries and Korea’s KOSPI indices also demonstrated gains of 0.29% and 0.24%, respectively.
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