Cryptocurrency evolved above today after a somewhat perplexed job report this morning which finally led to a slight increase in yields of the treasury. Bitcoin, The largest cryptocurrency in the world, oscillated around $ 98,400.
At 11 a.m. he, Ethereum (Ethn -0.38%))The second largest cryptocurrency in the world, exchanged about 3.5% more at the end of the afternoon yesterday. Xrp (Xrp 6.26%)) exchanged 8.6% more, while the token meme Mastiff (DOGE 1.51%)) increased by almost 5%.
A mixed job report
The monthly job report can often have an impact on the entire market, including stocks and cryptocurrencies, as it provides investors important data on the health of the economy and offers inflation indices And how the federal reserve could proceed with interest rates.
In January, the American economy added 143,000 jobs on a seasonal basis, below the estimate of Dow Jones of 169,000. However, the unemployment rate fell to 4% and the average time profits increased by 0.5% compared to the previous month, against 0.3% expected by economists. The American Labor Statistics Bureau has also revised the number of jobs added to the economy in the 12 months ending in March 2024 by 589,000, a reminder that data often changes, which is why investors should be careful to read too much in one report.
At first glance, the 143,000 jobs added to the economy suggested a softening on the labor market, which could be perceived as optimistic by investors in search of the federal reserve to reduce rates. However, the number of lower unemployment and the strong growth in average hourly profits indicate the opposite.
“The basis of the labor market remains incredibly solid. The data revisions of last year may have reorganized a few rooms from the house, but they have not fundamentally changed the structure,” wrote Cory Stahle, economist at Hiring laboratory, in fact, wrote a blog article after the report. “The data continues to give the federal reserve largely flexibility to adopt a measured approach to reduction rates while computer engineers an economic landing.”
The report did not seem to change the minds of investors on the trajectory of rate reductions. The majority of traders using term contracts over 30 days to bet on the Federal Reference Fund rate of the Fed still see the first chances of a drop in rate in June, with a slight majority waiting for a drop more rates in 2025. Keep in mind that these probabilities change daily.
In more specific news to tokens, the Chicago CBOE Exchange made four requests to the Securities and Exchange Commission yesterday requesting permission to exchange negotiated funds in exchange for crypto (ETF). For XRP. The Four ETF would come from Wisdomtree, Bitwise, 21Shares and Canary.
Confusing reaction
I find that most of this recent job data to support a healthy labor market and the treasure yields are higher, so it is a bit confusing to see the crypto react so positively. Usually the sector benefits from lower yields. Perhaps previous revisions are considered a reason to believe that the economy is not as strong as the figures show it and that there could be more rate drops on the horizon.
In the end, I like Ethereum as long -term take due to the general use of its network. XRP is intriguing due to his work with cross -border payments and several catalysts that could increase the token above, such as its own crypto. However, due to its volatility, I would recommend XRP as a smaller speculative position. I currently have no interest in Dogecoin.
Bram Berkowitz has positions in Bitcoin, Ethereum and XRP. The Motley Fool has positions and recommends Bitcoin, Ethereum and XRP. The Word’s madman has a Disclosure policy.