Why Did Bitcoin’s BTC Price Rise on Friday? BTC hovers above $27,000 as crypto investors ignore hot jobs data

Bitcoin edged higher on Friday but largely weathered a stronger-than-expected jobs report, a week of turmoil and excitement over the US debt ceiling, final negotiations and renewed inflation concerns.

The largest cryptocurrency by market cap recently traded around $27,180, up 1.2%. BTC surged above $27,000 just before US stock markets open on Friday, after trading well below that threshold for most of the previous two days, largely due to the type of inflation fears that have been sweeping prices over the past 18-months months.

“Bitcoin remains stable after a busy week of debt ceiling agreements, a complicated jobs report that showed both strong hiring and rising layoffs, and as lawmakers move ever closer to regulating cryptocurrencies,” said Edward Moya, senior market analyst at Foreign Exchange Market Makers Oanda wrote in an email, noting recent discussion of a Securities Clarity Act that could clarify “whether some tokens are unregistered securities.”

Ether recently changed hands at just above $1,905, up nearly 2% from the same time Thursday. As ETH investors also grappled with macro headwinds, the second-largest cryptocurrency has traded below this level for most of the past seven days.

Almost without exception, other major cryptos spent the day solidly in positive territory, with ADA and SOL, the tokens of smart contract platforms Cardano and Solana, recently up more than 4% and 3.5%, respectively. Meanwhile, according to the CoinDesk Market Index, a measure of overall crypto market performance, a variety of small DeFi-focused protocols have been the big winners over the past seven days, including Lido (LDO), Synapse (SYN), and PancakeSwap (CAKE). and increased by 15%, 13% and 12%, respectively. The CMI was last up 1.6%.

Stocks rose after the US Labor Department’s robust report showed the economy added 339,000 jobs in May, about 75% more than economists had forecast and also well above April’s 294,000 new jobs. The latest jobs data provided the latest evidence that the labor market has remained tight, a sign that the economy has not yet finished expanding and inflation will therefore remain a concern. But an unemployment rate of 3.7% in May, up from the 3.5% expected, was a more hopeful sign that the Federal Reserve could use to justify halting its steady rate hikes. Rate hikes have weighed on crypto markets.

The technology-heavy Nasdaq Composite and the S&P 500, which has a strong technology component, rose 1.4% and 1%, respectively. Safe haven gold, which was nearing a record high less than a month ago, fell 1.5% to trade at $1,965.

Oanda’s Moya said US central banks are hinting the Federal Reserve is facing a tough decision on a rate hike in June after hinting it was open to a freeze and possibly from the forthcoming Institute for Supply Management (ISM ) and consumer prices in May index publications.

“The Fed nearly cornered itself by suspending the June meeting, but it should be quite clear that it’s not done raising rates,” Moya wrote, also noting that “that’s mid-year That’s how it is.” The economy is not showing strong signs that the recession is looming in the second half of the year.”

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