Bitcoin and cryptocurrency prices have leaped following the latest U.S. jobs report that showed employers added 467,000 jobs in January, well above all estimates.
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The bitcoin price has climbed 8% over the last 24 hours to just over $40,000 per bitcoin, up from $36,000 just 24 hours ago.
Meanwhile, other major cryptocurrencies including ethereum, Binance’s BNB, solana, cardano and XRP have also jumped, adding over $100 billion to the combined crypto market.
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The bitcoin price has bounced off its recent lows with the price of ethereum, BNB, solana, cardano … [+]
The January jobs numbers also showed average hourly earnings rose 0.7% last month and 5.7% from a year ago, the biggest increase in decades and exacerbating fears of persistent inflation. The consumer price index climbed 7% in 2021, the largest 12-month gain since June 1982.
Soaring wages could mean the U.S. Federal Reserve takes an even more aggressive stance on inflation this year, with the market already pricing in an interest rate hike in March.
“January jobs data was shockingly strong,” Callie Cox, analyst at trading platform eToro said in emailed comments, calling the report “a huge deal.” “This is a robust job market, and it reinforces the Fed’s decision to hike rates.”
“All of this is more ammunition for Fed hawks to push even harder and makes it more likely that the central bank will embark on an aggressive series of interest rate hikes in 2022,” Mike Owens, global sales trader at Saxo Markets, wrote in emailed comments. “But the big question is will we get a 50-basis points hike in March?”
Meanwhile, online retailer Amazon reinvigorated stocks this morning, with its strong post-earnings rally wiping away the bad taste that Meta’s major miss left in investors’ mouths.
The bitcoin price crash over the last few months has weighed on the idea that bitcoin could act as a hedge against inflation—an idea popularized by famed investor Paul Tudor Jones in 2020.
Tudor Jones called bitcoin “the fastest horse to beat inflation,” however, the bitcoin price fell sharply late last year along with stock markets after the Fed admitted it would have to raise interest rates to cool the red-hot economy.
“In the last two years, risk-on equities and bitcoin have been positively correlated,” BitBull Capital CEO Joe DiPasquale said via email.
“This was not the case overall previously. This week, the Nasdaq and S&P 500 have recovered where they were before January 21, the day bitcoin sold off from $43,000 to $35,000. With equities’ partial recovery, all things being equal, we expected to see bitcoin back to $40-41,000.”
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The bitcoin price has rocketed over the last 24 hours, surging above $40,000 per bitcoin and helping … [+]
Ahead of the bitcoin price rally, ethereum and its major rivals solana, BNB and cardano had climbed following a broad sell-off earlier this week.
The price of ethereum and solana had fallen sharply after a $325 million decentralized finance hack spooked investors but prices rebounded after the project’s backer restored user funds.
Source: https://www.forbes.com/sites/billybambrough/2022/02/04/a-huge-deal-bitcoin-is-suddenly-soaring-as-the-price-of-ethereum-bnb-solana-cardano-and-xrp-rocket/