Bitcoin Falls After Strong Jobs Report: Crypto Recovery in Jeopardy

Bitcoin drops post jobs report, raising concerns for crypto rebound. Stay informed on the latest market shifts and their impacts.

Apr 5, 2024 - 10:13
Apr 5, 2024 - 10:14
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Bitcoin Falls After Strong Jobs Report: Crypto Recovery in Jeopardy
Bitcoin Falls After Strong Jobs Report: Crypto Recovery in Jeopardy

Bitcoin and other major cryptocurrencies experienced a downturn on Friday following the release of the U.S. jobs report. The report highlighted increasing inflationary pressures, stirring apprehension among investors and posing a potential setback to the cryptocurrency market's recent recovery efforts.

Within the past 24 hours, Bitcoin's price dropped by 1% to $66,000, a decline from its previous trading value of $66,800 before the release of the March nonfarm payrolls data. Despite reaching a record high of nearly $74,000 in mid-March, Bitcoin has struggled to maintain stability at these levels. Its recent volatility has sparked concerns of a possible correction, marking the second such occurrence within a month.

The focus of attention on Friday centered on the U.S. jobs report, which appeared to have a significant impact on Bitcoin's movement, mirroring trends observed in the stock market. Both asset classes demonstrated a strong correlation, and the release of the jobs report contributed to a broader decline in risk sentiment. Investors remain wary that persistent inflation could prompt the Federal Reserve to prolong its maintenance of historically high interest rates.

Market sentiment hinges on the outlook for price growth and interest rates, with investors seeking signs of stabilization in the labor market and inflationary pressures. However, the latest jobs report data did not align with these expectations. The U.S. economy added 303,000 jobs in March, surpassing the forecast of 200,000 jobs projected by economists surveyed by FactSet.

Aside from Bitcoin, Ether, the second-largest cryptocurrency by market value, witnessed a 4% decrease to $3,200. Smaller altcoins also experienced declines, with Solana falling by 10% and Ripple dropping by 1%. Memecoins, including Dogecoin and Shiba Inu, were not immune to the downward trend, recording losses of 8% and 2%, respectively.

Also Read: 3 Cryptocurrency Types to Avoid for Better Security

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