After the U.S. employment report, traders hoped for more Fed help, which led to a rise in bitcoin. Altcoins are already outperforming.
On Friday, bad news turned into good news for risk assets ranging from stocks to bitcoin.
In April, the US economy added 266,000 jobs, falling short of expectations of a 1 million increase. The poor employment report bolstered hopes of the Federal Reserve’s continued easy money strategy, sending bitcoin (BTC) up around 2% in the last 24 hours. The S&P 500 and Nasdaq both finished the day higher, while safe havens like Treasury bonds fell.
The April jobs report points to a shaky economic recovery, implying that the Fed’s easy money will continue to fuel the risk asset rally. Rising inflation is temporary, according to Fed Chair Jerome Powell, and whether the US central bank tightens policy will be determined by a number of factors, including labour market conditions.
In his regular newsletter, Mati Greenspan, founder of Quantum Economics, said, “The reaction from bitcoin is undeniable.” “Even gold and silver have risen to new all-time highs.”
As altcoins gain traction, speculation is causing funds to flow outside bitcoin.
“There was a lot of speculation about people placing the funds directly into bitcoin during the last round of stimulus. According to Greenspan, this time it’s dogecoin.
As of 21:00 UTC, Bitcoin (BTC) was trading at about $57,902. (4 p.m. ET). Over the last 24 hours, the stock has gained 3.2 percent.
The 24-hour range for Bitcoin is $55,321-$58,724 (CoinDesk 20)
As of 21:00 UTC, Ether (ETH) was trading at $3,524 USD (4 p.m. ET). Over the last 24 hours, the stock has gained 1.5 percent.
The 24-hour range for Ether is $3,361-$3,590. (CoinDesk 20)