As a researcher with a background in economics and experience following financial markets, I find this recent trend intriguing. The unexpected rise in the U.S. unemployment rate, despite the Federal Reserve’s indications of progress on inflation, has led to increased speculation about a potential interest rate decrease in September. This uncertainty seems to have bolstered the prices of various cryptocurrencies, including Bitcoin (BTC), Dogecoin (DOGE), XRP, and Cardano (ADA).
At present, Bitcoin (BTC), Dogecoin (DOGE), XRP, and Cardano (ADA) are experiencing significant gains in their market values among cryptocurrencies, with prices trending upward.
The recent surge in employment aligns with the most recent U.S. jobs report. Contrary to expectations, this report showed a rise in the unemployment rate, despite non-farm payrolls expanding by 206,000 during the month. This figure outpaced the Dow Jones prediction of 200,000 new jobs but failed to meet the revised May figure of 218,000 new jobs.
As an analyst, I would interpret this statement as follows: I recognize that policymakers are seeking greater reductions in inflation before considering lowering interest rates. However, if the labor market begins to weaken, it could become necessary for policymakers to act more urgently and adjust monetary policy accordingly.
Based on the recent jobs report released on Friday, I have observed an uptick in traders’ expectations for a September interest rate reduction. According to data from the CME Group’s FedWatch tool, the probability of a quarter-point cut now stands at around 75%, marking a significant increase from last week’s estimate of 64%.
BTC, XRP, ADA, DOGE rebounds
The cost of a bitcoin dropped to $53,500 on Friday, marking a level last seen in February, following the release of the Federal Reserve’s June meeting minutes. These minutes suggested that the Fed might not be prepared to lower interest rates at this time.
Jerome Powell, the Federal Chair, has announced that strides have been taken towards reducing inflation. However, the Federal Reserve intends to remain cautious and is not yet fully confident that inflation will settle back at its 2% goal before loosening monetary policy. Upcoming inflation figures will be released next week.
As a cryptocurrency analyst at the current moment, I’d like to share that Bitcoin experienced a 1.96% increase within the last 24 hours, reaching a price of $56,697 based on information from CoinMarketCap. In March of this year, Bitcoin peaked at approximately $74,000 due to the U.S.’s first approval of a spot Bitcoin Exchange-Traded Fund (ETF). However, since then, its trading has been relatively stable within a narrow price range.
I’ve observed a significant rebound in Dogecoin’s price since it hit a low of $0.0915 on Friday. As of now, during Saturday’s trading session, Dogecoin has gained 9.60% over the past 24 hours, reaching a value of $0.1094.
XRP was up 5% in the last 24 hours to $0.435, while Cardano’s ADA coin was up 2.29% to $0.356.
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2024-07-06 19:37