Following mixed economic data from XRP and Solana in January, Bitcoin rebounded in the wake of reports after spending $100,000 on Friday on under $100,000, before rising 6% and 3% respectively over the last 24 hours .
A report from the Bureau of Labor Statistics showed that the US added 143,000 jobs in January. This does not forecast 170,000 jobs and 256,000 jobs added in December. The data shows a significant slowdown in employment. However, despite expectations remained stable, the unemployment rate fell from 4.1% to 4%.
Patrick Liou, principal of institutional sales at Crypto Exchange Gemini, said in a recent interview that the employment report contributed to the Bitcoin bump and subsequent sales. this year.
“I think that’s really leading to a reduction in future expectations, at least today,” he said.
Economic data, like Friday’s employment report, often affects the crypto market. This is because it can show the strength of the US economy and show whether the Fed will continue to cut interest rates. Lower interest rates are often a good thing for crypto, as more loose economic situations bring investors back to dangerous assets.
Liou said competing data would not provide a clear advance for the Fed. “The Fed is really in wait mode, and I think the traders are really… on the fence too,” he said. “They’re not sure yet, as inflation has dropped a bit, but that’s not a rapid descent.”
The Fed began cutting rates in September for the first time in four years after raising prices to combat inflation driven by the Covid-19 pandemic. Rate cuts have sparked a wave of investors returning to crypto due to new interest in dangerous assets.
After a total of three interest rate cuts in 2024, investors are uncertain about interest rate cuts this year, as the Fed has shown that cuts will be less in 2025. Rate reduction.
This story was originally featured on Fortune.com.