Bitcoin and Ethereum Jump With Stocks on Jobs Report Release

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Bitcoin is back above $17,000 rising with US equities as traders responded to a report from the Labor Department showing an increase in unemployment insurance claims, a possible sign that interest rate hikes will Federal interest could slow.

The price of the largest digital asset by market capitalization was trading at $17,183, a 2.1% 24-hour jump, at the time of writing.

Ethereum, the second-largest cryptocurrency, was doing even better: up 3.7% in the past day, trading hands for $1,278.

The vast majority of the biggest digital assets rose over the past day, closely tracking US stocks: Wall Street traders were pleased with data showing Americans filing for unemployment benefits rose last week and unemployment rolls hit a 10-month high at the end of the month.

Economists suggest that low unemployment may mean people are spending more, causing prices to rise. With rising unemployment, prices are less likely to rise, in short, inflation will fall.

The S&P 500 rose 0.75% to end at 3,963.51, ending its biggest losing streak since October, while the Dow Jones Industrial Average gained 183.56 points, or 0.55%, to finish at 33,781.48. The Nasdaq Composite jumped 1.13% to end at 11,082.00.

This year, digital assets have followed what the US stock market is doing: when the Fed raised interest rates to rein in inflation, investors dumped risky assets like stocks and bitcoin.

Today’s news was a small sign that policymakers might get inflation under control.

However, the broader crypto market is still in massive decline: this time last year, Bitcoin was trading for over $50,000 per coin; Ethereum was priced at $4,431.

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