Bitcoin Falls After the Jobs Report, But Crypto Prices Are Showing Relative Stability

The crypto market fell with stocks after the highly anticipated jobs report showed the labor market is still tight and could keep the Federal Reserve on course to raise rates aggressively.

The price of bitcoin fell 3.3% to $19,380.74, according to Coin Metrics. Ether fell 2.7% to $1,322.40.

On Friday the Labor Department reported that the U.S. economy added 263,000 jobs in September, compared with the Dow Jones estimate of 275,000, and that the unemployment rate fell to 3.5% from 3.7% in the previous month.

“The jobs report points to no change of tune on the horizon for the Fed, so we continue to expect firm interest rates which also adds pressure to crypto markets,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

Cryptocurrencies’ correlation with stocks has weakened in recent weeks but remains high.

“Crypto looks to be at an important technical juncture here where it looks like it’s trying to carve out a bottom, but feeling heavy,” he added. “I still think it, more likely than not, breaks to the downside given rising interest rates and risk-off sentiment, but so far it’s a surprising effort to hold the line.”

The market has been in a good-news-is-bad-news holding pattern with the Federal Reserve laser focused on bring down inflation. While the new data shows strength in the U.S. economy, that could make the Fed more likely to continue with its aggressive rate hiking plan (whereas investors are hoping for a pause or a pivot), which puts pressure on stocks and weighs on crypto.

“Crypto has been the hardest hit by rate hike fears this year,” said Callie Cox, U.S. investment analyst at eToro. “It makes sense – many crypto projects don’t have cashflows, so people invest in them for what they could be, not necessarily what value they’re providing right now. When rates rise, the future value of a dollar falls.”

Cox also highlighted the resilience of crypto assets in the second half of the year, noting that while stocks have revisited new lows with the spike in bond yields, bitcoin and ether haven’t done the same. Bitcoin has been trading in a tight range of between $18,000 and $25,000 since falling to its lows of the year in June.

“To me, that’s progress in this bear market,” Cox said. “Crypto prices could be telling us the rate anxiety could be at a turning point. Crypto’s strength is also a good indicator of frothiness in the market. It seems like the brutal growth selloff has finally washed out all the weak hands.”

“Bitcoin is also far below its highs too,” she added. “But stability is a step in the right direction.”

NEWS RELATED

Elon Musk says he faces 'quite significant' risk of being assassinated

Musk made the comments in a Twitter Spaces discussion on Saturday evening

View more: Elon Musk says he faces 'quite significant' risk of being assassinated

Elon Musk thanks advertisers for returning to Twitter

A wave of companies stopped advertising on Twitter after Musk's acquisition

View more: Elon Musk thanks advertisers for returning to Twitter

Report: Woman attacks 6 deputies at New Orleans airport

Report: Woman attacks 6 deputies at New Orleans airport Officials say a woman attacked six sheriff’s deputies while refusing to exit a plane on Thanksgiving Day at an airport in Louisiana Officials say a woman bit, kicked and spat on six sheriff's deputies while refusing to exit a plane ...

View more: Report: Woman attacks 6 deputies at New Orleans airport

Why Rebecca Hendrix From Law & Order: SVU Looks So Familiar

Jason Mendez/Getty Images The psychiatrist Dr. Rebecca Hendrix appeared in a number of “Law & Order: Special Victims Unit” episodes, and fans may remember her for her relationship with Detective Olivia Benson (Mariska Hargitay). While the two would argue about certain situations, they were still friends and had been ever ...

View more: Why Rebecca Hendrix From Law & Order: SVU Looks So Familiar

HPD investigating suspected murder-suicide outside Texas Children's Hospital West Campus

Police appeared to rope off a section of the hospital's parking lot while officers processed the scene.

View more: HPD investigating suspected murder-suicide outside Texas Children's Hospital West Campus

‘Tis the season of scamming, experts say

The holiday season is the season of taking for scammers, according to experts. “This is the holiday season and hackers and fraudsters are hard at work trying to scam individuals to essentially click on stuff and get your hard-earned money,” said cybersecurity analyst Ritesh Kotak. The Canadian Anti-Fraud Centre said ...

View more: ‘Tis the season of scamming, experts say

Dallas Museum of Art to reopen after evacuation due to bomb threat

Police said the museum got a call about a bomb in the building. An Explosive Ordinance Squad found no credible threat.

View more: Dallas Museum of Art to reopen after evacuation due to bomb threat

'Shamelessness': Hakeem Jeffries pushes back on election denier label

Rep. Hakeem Jeffries (D-NY), recently appointed leader of House Democrats, said it is unfortunate Republicans are focusing on comments he made relating to the 2016 election as they enter the majority in the House. Republicans began pointing to Jeffries’s comments denying the legitimacy of former President Donald Trump’s 2016 win ...

View more: 'Shamelessness': Hakeem Jeffries pushes back on election denier label

Harry Kane hails England 'maturity' in Senegal win, pundits pour praise on Jude Bellingham

Bulls' Javonte Green to Miss Game Vs. Kings With Knee Injury

‘Eami’ Creates Unique Entry Into Little-Known Indigenous Region By Blending Factual & Fictional Storytelling – Contenders Documentary

Prince Harry and Meghan’s Archewell chief steps down from role

Giants defense gets 20-20 tie against division rival Washington Commanders

World Cup news: England's Raheem Sterling heading home after break-in at family home

Bob Dylan’s Friend Said He Had a ‘Fundamentally Juvenile Sense of Humor’

'The Constitution is not the buffet at Mar-a-Lago': CNN's Acosta smacks down Trump's new election plan

Mach 3 Legend: How the SR-71 Spy Plane Was Born

Coastal Carolina hires NC State OC Tim Beck as coach

Sarah Chalke Was Terrified To Film That Firefly Lane Karaoke Scene

How far France goes in the World Cup might depend on Kylian Mbappe

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network