Bitcoin Rises After Jobs Report. The reaction from crypto traders is muted.

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Bitcoin is very sensitive to macro forces. The time of dreams

Bitcoin and other cryptocurrencies rose slightly after the release of the US jobs report for March. With stock markets closed for Good Friday, cryptos could have been a leading indicator of risk sentiment, but those hopes have so far fallen flat with muted moves.

The price of Bitcoin has risen less than 1% in the past 24 hours to nearly $27,970 from around $27,900 before the labor market data was released. The largest digital asset was holding below the $28,000 level at which prices recently hovered around the highest level since the crypto crash accelerated last June, albeit below a recent near peak. of $29,500. Bitcoin has surged around 70% so far this year, spurring calls for a new bull market.

It looks like crypto traders are heading for a long weekend as the consolidation phase remains intact as Bitcoin remains trapped in its range, said Edward Moya, an analyst at brokerage Oanda. Bitcoin needed a light job count to trigger a market reaction and that didn’t happen today. Either way, Bitcoin still has the potential for a big move in the next two weeks.

So far the reaction in cryptos has been muted, but there is a whole long weekend where choppy crypto traders might feel the need to offer price one way or another. . If bullish sentiment prevails, analysts see the $30,000 level as key, as it represents Bitcoin’s position before last summer’s selloff turned into a brutal bar market.

Cryptos have recently returned to their correlation with equities, moving in line with the Dow Jones Industrial Average and S&P 500 in reaction to macro forces affecting both asset classes. With the exchange closed for the long weekend, digital asset traders may still react to the jobs report and the highly watched nonfarm payrolls figure that was released at 8:30 a.m. Eastern.

Bitcoin’s big rally so far this year came amid expectations that the Federal Reserve would become more dovish on monetary policy, easing interest rate hikes and possibly even cutting rates in 2023. Central banks’ campaign to hike rates over the past year in an effort to contain inflation has been one of the drivers behind the sell-off in stocks and crypto over the past year. same period.

The jobs report is an important data point for the Fed ahead of its next rate decision. The United States added 236,000 jobs in March, the slowest pace of hiring growth in years and below economists’ expectations of 240,000 jobs. It’s not radically different from what the market believed, hence the muted reaction, for now.

Beyond Bitcoin, Ether is the second-largest cryptoshed under 1% at $1,850, remaining generally flat despite Bitcoin’s moves. Smaller cryptos or altcoins were more mixed with up to Cardano less than 1% and Polygon less than 1%. Memecoins were weaker, with wind blowing off Dogecoin’s sails down 7% after an Elon Musk-fueled rally in recent days, although Shiba Inu lost less than 1%.

Write to Jack Denton at [email protected]

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