At the end of the week, the crypto market benefited from hopes for a less tight US monetary policy. On Friday afternoon, the price of the best-known digital currency Bitcoin jumped over the $60,000 mark.
At the daily high, around $60,750 was paid for one Bitcoin on the Bitstamp trading platform. That was about $1,600 or almost three percent more than the day before. Other crypto assets also rose.
New figures from the American labor market
The reason could have been new figures from the American labor market. The government’s monthly jobs report was significantly weaker than expected, with employment rising less than expected and unemployment rising – albeit at low levels.
“A bad jobs report gives the recently clouded interest rate cut fantasies new breeding ground,” said crypto expert Timo Emden of Emden Research.
The situation on the labor market has a major influence on monetary policy
The situation on the labor market has major consequences for the monetary policy of the US Federal Reserve. Combined with sluggish inflation, the robust labor market is keeping the Fed from cutting rates quickly. However, if developments weaken, monetary easing may come closer again. “The US Federal Reserve may now feel emboldened to implement prudent monetary policy sooner than expected,” Emden explains.
Falling interest rates are generally considered beneficial for risky investments, including cryptocurrencies, due to their high price fluctuations.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
