Bitcoin cracks $17,000, Solana and Cardano lead the race with over 20% gains

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Source: BitcoinBTC

In December, the Fed was not aggressive with rate hikes as it was most months of 2022 when it raised rates by 75 basis points. It only raised rates by 50 basis points last month. Our current data shows that the price combination of SOL and ADA shot up over 30% late last night.

BTC is now trading at the $17,000 level for the first time this year, surging in prices like bonds and stocks following indications that the US Fed may slow its aggressive rate tightening. The Bureau of Labor Statistics (BLS) non-farm payrolls reports were believed to be the significant determinant of the US Fed’s hike in the inflation rate.

However, the price spike in BTC, stocks and bonds came 90 minutes after last month’s sharp drop in the ISM non-manufacturing index. The ISM services index fell from 56.5 to 49.6. A reading below 50 indicates an economic contraction, and this is the first time that the ISM services index will not exceed 50 since May 2020.

December jobs report previews

In addition, the new orders sub-index in the December nonfarm payrolls report fell sharply from 56 to 45.2. Meanwhile, the ISM services index was below 50 for the second month, its December index being 48.4. Crucial factors in December’s nonfarm payrolls report were better than analysts’ forecasts.

For example, the unemployment rate was 3.5% compared to analysts’ forecast of 3.7%, while there were 223,000 additional jobs, 23,000 more than analysts’ forecast. However, additional jobs have been significantly reduced from the 300,000 that was often the case until June 2022. Additionally, the number of 223,000 new jobs is the lowest since April 2021.

On the other hand, the increase in salaries was lower than the forecasts of the experts, with salaries year-on-year rising by 4.6% against forecasts of 5.0%. While analysts were forecasting a 0.4% increase in average hourly earnings, non-farm reports show earnings rose 0.3%. Bond and stock prices started skyrocketing after the release of the ISM report and have stayed that way.

As of this writing, the 10-year bond yield is 3.56% after falling 16 basis points, while the Nasdaq is up about 3%. In December, the Fed was not aggressive with rate hikes as it was most months of 2022 when it raised rates by 75 basis points. It only raised rates by 50 basis points last month. As a result, traders expect the US apex bank to raise rates by just 25 basis points at its February monetary policy meeting.

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BTC’s price surge started late on Friday, but it hasn’t been easy. However, the leading digital asset traded at $17,000 for the first time in 21 days. While issues within the crypto market have affected the price of BTC, its price action has mostly been affected by the aggressive rate hikes from the Fed. Thus, the BTC price surge could continue if the Fed stops raising rates aggressively.

Sol and ADA set monthly highs

Meanwhile, our current data shows that the combination of ground price and ADA shot up over 30% late last night, with both trading at levels not seen in the past two months. ADA is trading at $0.33 after rising 16.4% in the past 24 hours, while SOL is up 21% in the past 24 hours, trading at $16.35. ADA has not traded at this level since November 19, while SOL has not traded at this level since November 9.

Recall that the price of SOL fell significantly in November, losing more than 50% of its value following rumors about the blockchain’s relationship with Sam-Bankman-Fried, founder of the defunct FTX exchange. The data further shows that the price of SOL has increased by nearly 65% ​​over the past week, making it the top 20 best performing coins this year.

SOL’s price began to rise after the launch of a meme-themed coin, bonk. BONK’s bull run had a positive impact on SOL’s price. Before its bull run was over, bonk was the best performing token among the top digital assets of the week, gaining over 3,000%.

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