- U.S. employment rose unexpectedly, adding 216,000 jobs.
- Bitcoin slightly dipped, reflecting the jobs report impact.
- Government and healthcare sectors led the job market surge.
A stronger economy is supposed to be good news for investors. However, when it comes to speculative assets like software and crypto, the opposite is often the case.
Most recently, the Labor Department’s jobs report revealed 216,000 new jobs in December 2023, showing signs of a stronger economy. This has led to a slight dip in Bitcoin and other crypto assets.
Strong Jobs’ Figures Test Bitcoin
The December jobs report, published on Friday, January 5, delivered a surprise with a stronger-than-anticipated performance, adding 216,000 positions while maintaining a steady unemployment rate of 3.7%. This figure surpassed the economists’ forecast of 170,000, showcasing a robust U.S. labor market as we closed out 2023. Notably, the sectors contributing to this growth were government jobs and healthcare fields.
Source: Coinmarketcap
This economic indicator sent ripples through the markets, including cryptocurrencies. Bitcoin, the leading digital currency, experienced a slight dip to $43.300 following the announcement. Strong job figures signal a strong economy, which makes the Federal Reserve less likely to cut rates sooner.
Bitcoin Rebounds on ETF Excitement
Still, the discourse around Spot Bitcoin Exchange Traded Funds (ETFs) continues to dominate the market. Following the jobs dip, Bitcoin rebounded to $43,680 , registering a 1% gain over the past 24 hours.
There is a growing anticipation that the SEC may approve multiple spot Bitcoin ETF applications. The market has responded positively to these expectations, with Bitcoin’s price rebounding above $44,000 as the likelihood of approval increases.
The SEC is currently reviewing 13 proposed spot Bitcoin ETFs. With a deadline set for January 10, there is significant speculation in the market that the regulator will approve several of these applications.
On the Flipside
- Despite their reliance on easy money, there are some recent signs that crypto markets are becoming more resilient. For instance, the crypto markets did not react that strongly to the Fed’s September announcements.
- As the biggest cryptocurrency adoption increases, Bitcoin advocates claim that the asset will transition from speculative to an inflation hedge.
Why This Matters
The U.S. job market strongly impacts a range of assets, including cryptocurrencies. Due to its effect on Fed policy, most traders pay attention to job reports.
