Bitcoin and Ethereum Prices Shake Following Mixed US Employment Report


Bitcoin price was volatile on Friday after the release of the Labor Department data, following its trend this week down and dipping as investors decide what to do with riskier assets.

At first, the biggest cryptocurrency rallied after news showed US employers added 315,000 jobs in August, pushing the size of the labor force to a record high. The report also showed, however, that job growth slowed in the United States, with employers adding more than 526,000 jobs in July.

And as quickly as it appeared, BTC then fell back today. The price of bitcoin at the time of writing was $20,110, according to CoinGecko, down 1.5% from this morning’s Eastern Time high of $20,428 after data fell from the Ministry of Labour.

The digital asset’s early jump was likely due to seemingly good market news from the US, experts say Decrypt. Trader and analyst Alex Krüger said economic data was “100% the driving force”.

Bitcoin first rallied against US stocks – and when US stocks rallied, Bitcoin tends to do the same. The asset has been closely tied to stocks this year as investors holding cryptocurrencies have been trade them like tech stocksaccording to data from Arcane Research.

But later in the trading day, stocks and crypto took a hit. Why? Because investors are always keen to move risky assets, experts have confirmed Decrypt. This for a number of reasons, including uncertain energy times: today Russia shut down the Nord Stream 1 gas pipeline, cutting off gas supplies to Europe and scaring markets.

Risky assets were volatile following the employment figures, XBTO Group Head of Trading Paul Eisma said: adding that eequity, rates and crypto markets initially rallied before selling off as investors were worried the jobs numbers aren’t weak enough to change the Feds rate path, as well as anxiety with the Gazprom Nord Stream 1 pipeline close.

Bitcoin wasn’t the only cryptocurrency to rise and fall on Friday. Ethereum was trading for $1,591, a 1.5% 24-hour jump. At one point, it was up almost 6%, hitting $1,642.

Ethereum, the second largest cryptocurrency by market cap, is upgrade due this month in a long-awaited move towards a proof-of-stake blockchain, which should make the network more energy efficient.

Stay up to date with crypto news, get daily updates in your inbox.

Source link


Comments are closed.