Bitcoin and Ether Hit Lows as Markets React to U.S. Economic Data
The most recent U.S. non-farm payroll (NFP) data, which is a crucial gauge of the nation’s employment, inflation, and general economic health, was released on Friday. August had a 142,000 increase in the U.S. NFP, less than the 160,00 projected by the market.
After falling throughout the weekend in response to Friday’s negative U.S. economic news, Bitcoin and Ether are still trading below critical levels. The biggest cryptocurrency, Bitcoin, is currently trading at $55,164 after rising 1.47% during the previous day. The Block’s cryptocurrency price page shows that Ether increased by 1.43% to trade at about $2,322.
Crypto would need a near-perfect mix of NFP outcomes to see higher prices. Instead, we received one of the worst-case outcomes as the repricing of risk sentiment dragged BTC and ETH down.
Augustine Fan, Head of Insights at SOFA.org
According to Fan, recent data suggests that the growth of the private sector in the United States is approaching its weakest growth in over a decade and that the economic recession appears closer than previously believed.
Crypto Markets Volatile Amid Lower Unemployment and Weak Payroll Figures
When the economic data was released, bitcoin hit lows of about $52,850. On Friday, Ether temporarily dipped to about $2,160. The day’s release of the U.S. unemployment rate, which fell to 4.2%, nevertheless, gave encouraging signs.
The lower unemployment figure has lessened the concerns of imminent recession. However, it seems the lower-than-expected payroll data is dominating the market sentiment at the moment.
Lucy Hu, Metalpha’s senior analyst
According to Hu, there will be substantial volatility in the cryptocurrency market until the next Fed meeting. On September 17 and 18, the Federal Open Market Committee will convene again. Moreover, this Wednesday and Thursday will see the arrival of the U.S. Producer Price Index (PPI) and Consumer Price Index (CPI). How the market will react to all this data is a matter of curiosity.
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