Bitcoin rose 3% to over $62,000 on Friday after a better-than-expected jobs report, capping a volatile week for the most popular cryptocurrency. The United States added a surprising 254,000 jobs in September, more than the 140,000 that some economists had expected, demonstrating the strength of the overall American economy.
The jobs report also makes the outlook more bullish for Bitcoin, which fell 6% earlier this week to about $60,000 due to instability in the Middle East.
Bitcoin gradually rose in the lead-up to the release of employment data. According to data collected by CoinGecko, the top cryptocurrency fell slightly in the hours following its release before surging more than 1%. Other cryptocurrencies such as Ethereum and XRP have seen similar spikes.
For some analysts, this is a good sign for the crypto market, but for Columbia Business School professor Omid Malekan, it remains unclear how this information will affect Bitcoin prices in the long term. It is.
Malekan noted that the price of Bitcoin has risen 124% in the past year, hitting an all-time high of $72,000 in March, and jumping about $62,000 in the past eight months. did. “We know the economy is doing well, or doing better than expected,” he said. “If that’s the case, the Fed isn’t going to cut rates as much as people were expecting, but given what’s happened for most of this year, I’m not sure how that will affect the price of Bitcoin. It is unknown.”
The business professor also acknowledged the uncertainty associated with other macroeconomic factors, such as the upcoming election. “Polls, betting markets, experts, everyone thinks there’s going to be a lot of fuss over who’s going to win. So the uncertainty around that could just be weighing on crypto prices.” said Malekan.
Malekan added: “It’s a confusing time because normal human relationships are not functioning well.” “And if they don’t work in one direction, you have to question whether they work in the other direction.”
According to the report, the unemployment rate in August fell from 4.2% to 4.1%. These numbers, in addition to slowing inflation, make it less likely that the Federal Reserve will continue to cut rates aggressively.
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