Reserve

Solana

Bitcoin

Strong

The global cryptocurrency market saw a <a href="https://news.todayq.com/crypto-market-takes-hit-over-nycbs-unexpected-move/" target="_blank" rel="noopener noreferrer nofollow">sharp decline</a> following the release of positive US job market data. Bitcoin (BTC) trading at around $43,120 suddenly dropped below the crucial $43k price level to trade at $42,652 within a few minutes of US employment data. However, the US job data came out to be better than expectations. Is strong job data bad for crypto? 
According to reports, the US economy added 353,000 jobs in January 2024. The December jobs report was revised upward as it revealed the addition of 333,000 jobs. Initially, it was reported that 216,000 jobs were made. It is important to note that this upward revision breaks a 10-month trend of downward adjustments in the reported jobs number.
As we look at the market sentiments, the strong job market data raised questions about the possibility of the Federal Reserve cutting interest rates in March. The US labor market has already seen downward revisions in 10 out of the last 12 months. This makes the upward revision a big highlight especially as market expectations leaned toward rate cuts.
The recent situation highlights widespread job growth in different sectors. This includes professional and business services, health care, retail trade, government, social assistance, and manufacturing.
Reports suggested that in addition to job growth, wage growth also showed strength. The average hourly earnings increased by 0.6% in January, double the monthly estimate. On a year-over-year (YOY) basis, wages jumped by 4.5%, which surpassed the forecast of 4.1%. The unemployment rate remained steady at 3.7%, against the estimate of 3.8%. Market to take a new turn? 
The positive economic data signals a potential shift in the macroeconomic landscape for 2024. However, the high attention will be on factors such as employment, inflation, and growth.
The Federal Reserve’s explicit forward guidance to data dependency suggests that these indicators will play a more high role in shaping market sentiment. Strong employment data and higher inflation may lead to a sentiment of higher rates for a more extended period, while disinflation or weak employment data could prompt speculation of imminent rate cuts.
It remains crucial for the crypto market as the job data left a heavy dent in its cumulative cap. Ethereum and Solana dropped by 0.5% and 1%, respectively in just 1 hour. The total market cap now stands at $1.64 trillion.
However, Bitcoin is trading at an average price of $42,709, at the press time.
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Bitcoin faces sharp drop post positive US job data

Todayq News

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