Zinger Key Points
- A crypto trader views the December jobs report as bullish and hopes the market will soon "come to its senses."
- Another trader sees the bearish reaction as a short-term overreaction, with a high likelihood of a rebound.
- Get daily trade setups, exclusive stock picks, and real-time alerts today.
Unexpectedly strong labour market data has sparked a bearish response in crypto markets, with Bitcoin BTC/USD teetering around the $94,000 mark.
What Happened: Data published on Friday shows the U.S. added 256,000 parolls in December, sending bond yields soaring and knocking Bitcoin off its morning recovery.
The apex crypto had recovered from $92,000 to $95,000 overnight, but quickly lost over $2,000 in reaction to the stronger-than-anticipated data.
Crypto trader Jelle highlighted the abrupt shift in market sentiment, pointing out that the jobs data managed to reverse the price momentum with the words “stairs up, elevator down.”
Prominent technical analyst Kevin argued that the report’s strong labor market indicators—low unemployment and PCE inflation within the Federal Reserve's 2% range—are positive for the economy.
Kevin believes the market’s negative reaction stems from an overreliance on rate cuts, even though the economy appears healthier without them.
"Report was bullish. Hopefully market comes to its senses," Kevin explained.
Echoing a similar opinion, Charles Edwards, founder of Capriole Investments highlighted the market’s bearish overreaction to a strong employment report, which he sees as bullish in the long run.
He noted that fewer jobs would allow rates to stay high, but strong job numbers suggest the bull market could extend further.
The report, the best in six months, quells fears of rising unemployment. E
dwards also pointed out the extremely high intraday put-call ratio, comparable to COVID crash lows, suggesting a potential market bounce ahead.
Also Read: Bitcoin To Bounce Back In Q1 But Beware 20% Corrections, Analysts Warn
Why It Matters: Before the report, analysts outlined potential market scenarios based on varying unemployment outcomes.
A “hot” jobs report—defined as over 200,000 jobs added—was expected to trigger a selloff, which is precisely what happened.
Bitcoin saw whale transactions and exchange netflows dropping by 6.2% and 335%, respectively.
The It is trading at $94,400 at the time of writing, up 1.8% on the day.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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