Bitcoin BTC/USD spiked to over $62,000 in Friday morning trading following the U.S. Labor Department’s April jobs report.
What Happened: The data shows the U.S. economy added 175,000 jobs in April, falling short of the consensus estimate of 240,000. The unemployment rate came in at 3.9%, slightly higher than the expected 3.8%.
Economist and trader Alex Krüger described the report as “bullish” and “weaker than expected payrolls, yet still strong,” noting that the crypto market’s reaction was in sync with other risk assets.
Why It Matters: The mixed results of the April jobs report have sparked a debate about the potential implications for the Federal Reserve’s monetary policy and the broader economy.
Some analysts, such as James van Straten, lead analyst at CryptoSlate, argue that two potential rate cuts in 2024 could lead to more inflation while not bringing back jobs.
Self-proclaimed value investor Mike Alfred sees the weakening US Dollar Index (DXY) as a bullish sign for Bitcoin and select mining stocks.
Nick Timiraos, Chief economics correspondent for The Wall Street Journal, believes the April jobs report is unlikely to change much for the Federal Reserve. He sees the Fed more focused on inflation data, with another jobs report due before their next meeting but notes that the report “will certainly help ease fears about reacceleration/overheating.”
The market reaction lends further credibility to the thesis that macroeconomic developments are back to being the main driver of short-term Bitcoin price action.
Price Action: At the time of writing, Bitcoin is trading around $61,770, up 5.5% over the past 24 hours.
What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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