Ethereum

Jerome Powell

Bitcoin

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<p class="is-style-lead">The global crypto market capitalization rebounded above the $1.6 trillion milestone on Feb. 2 as the latest non-farm payrolls figures cast doubt on U.S. Fed Chief, Jerome Powell’s recent comments.&nbsp;</p> 
<p>The job figures in the latest non-farm payrolls report suggest crypto bulls could position for positive price action.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="powell-s-comments-send-crypto-prices-into-90-billion-tailspin">Powell’s comments send crypto prices into $90 billion tailspin&nbsp;</h2> 
<p>On Feb. 1, the global crypto market capitalization dipped toward the $1.5 trillion area. This came barely 48 hours after Powell made controversial statements suggesting postponing rate cuts beyond March 2024, as widely predicted.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“Based on the meeting today, I would tell you that I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that. But that’s to be seen,”</p> <cite>U.S. Federal Reserve Chairman Jerome Powell</cite>
</blockquote> 
<p>Powell’s statements came after a scheduled Federal Open Market Committee (FOMC) meeting on Jan 31. It triggered a significant pullback across risk assets, including stocks and the crypto markets.</p> 
<figure class="wp-block-image">
 <img decoding="async" width="1600" height="646" src="https://crypto.news/app/uploads/2024/02/image-5.png" alt="Total Crypto Market Cap vs. Bitcoin (BTC) vs. Ethereum (ETH) Price Performance after Jerome Powell Statement, Jan. 30 - Feb. 1, 2024 | Source: TradingView" class="wp-image-14244920">
 <figcaption class="wp-element-caption">
  Total Crypto Market Cap vs. Bitcoin (BTC) vs. Ethereum (ETH) Price Performance after Jerome Powell Statement, Jan. 30 – Feb. 1, 2024 | Source: <a href="https://www.tradingview.com/x/zJ9pPvTe/" target="_blank" rel="noreferrer noopener">TradingView</a>
 </figcaption>
</figure> 
<p>Within 48 hours of Powell’s comments, Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>)&nbsp;and Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) prices dipped 5%, respectively, while the overall crypto market tumbled 4.3%, shrinking by over $90 billion between Jan. 30 and Feb. 2 as depicted in the chart above.&nbsp;&nbsp;</p> 
<p>However, on-chain signals suggest that Ethereum investors doubled down on their bullish positions in defiance of the market pullback. Also, the latest official non-farm payrolls report released on Feb. 2 could set the stage for a bullish recovery phase in the days ahead.&nbsp;</p> 
<h2 class="wp-block-heading" id="non-farm-payrolls-report-nearly-doubles-market-expectation">Non-Farm Payrolls Report Nearly Doubles Market Expectation</h2> 
<p>On Feb. 2, the U.S. Bureau of Labor Statistics released the latest edition of its monthly non-farm payrolls report. Ahead of the latest figures, consensus data compiled by TradingEconomics shows that the market analysts had priced in a 180,000 increase in U.S. non-farm jobs.&nbsp;</p> 
<figure class="wp-block-image">
 <img decoding="async" width="1600" height="947" src="https://crypto.news/app/uploads/2024/02/image-4.png" alt="USA Non-Farm Payrolls Report, Feb 2, 2024&nbsp; " class="wp-image-14244919">
 <figcaption class="wp-element-caption">
  USA Non-Farm Payrolls Report, Feb 2, 2024&nbsp; | Source: <a href="https://tradingeconomics.com/united-states/non-farm-payrolls#:~:text=Non%20Farm%20Payrolls%20in%20the,Thousand%20in%20April%20of%202020." target="_blank" rel="noreferrer noopener">TradingEconomics</a>
 </figcaption>
</figure> 
<p>The official figures released on Feb. 2 showed that U.S. non-farm establishments added 353,000 jobs in January 2024, 92.8% higher than market expectations. A closer look also shows this uptick of 20,000 jobs represents a fourth consecutive month-on-month increase dating back to October 2023.</p> 
<h2 class="wp-block-heading" id="how-u-s-non-farm-payrolls-report-impact-crypto-market">How U.S. non-farm payrolls report impact crypto market</h2> 
<p>Strategic investors could interpret this better-than-expected jobs data as a potentially bullish indicator for risk assets, including stocks and cryptocurrencies. Increasing jobs typically signals an overheating economy, which often prompts consideration for rate cuts to cool the market.</p> 
<p>This doubts Powell’s recent statement that the Fed could postpone rate cuts beyond the widely-predicted March 2024.</p> 
<p>In essence, the latest U.S. non-farm payrolls report for January 2024 increases expectations of imminent rate cuts among investors. This could trigger more bullish trading activity across the crypto markets in the days ahead.&nbsp;</p> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="2580" height="1042" src="https://crypto.news/app/uploads/2024/02/TOTAL_2024-02-02_20-58-24.png" alt="Crypto Market Price Action after Non Farm Payrolls data, Feb 2, 2024" class="wp-image-14244904">
 <figcaption class="wp-element-caption">
  Crypto Market Price Action after Non-Farm Payrolls data, Feb 2, 2024. Source: <a href="https://www.tradingview.com/chart/rzBvvOuV/?symbol=CRYPTO%3ASOLUSD" target="_blank" rel="noopener">TradingView</a>
 </figcaption>
</figure> 
<p>At press time on Feb. 2, the global crypto market capitalization is trending at $1.6 trillion, adding $3.6 billion daily. Since the non-farm payrolls report was published, Bitcoin price is back above $43,000 while Ethereum price has also reclaimed the $2,300 territory. </p> 
<p>This tamed positive reaction could set the stage for a more bullish outlook in the days ahead.&nbsp;</p>

Crypto market rally beckons as US non-farm jobs double expectations

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