Bitcoin and other major cryptocurrencies saw a drop on Friday following the release of the US jobs report. The report highlighted rising inflationary pressures, creating apprehension among investors and posing a potential setback to the cryptocurrency market’s recent recovery efforts.
In the last 24 hours, the price of Bitcoin fell 1% to $66,000, a decline from its previous trading value of $66,800 before the release of March non-farm payrolls data. Despite reaching an all-time high of nearly $74,000 in mid-March, Bitcoin has struggled to maintain stability at these levels. Its recent volatility has raised concerns about a possible correction, marking the second such occurrence in a month.
The spotlight on Friday was on the US jobs report, which appeared to have a significant impact on Bitcoin’s movement, mirroring trends seen in the stock market. Both asset classes demonstrated strong correlation and the release of the jobs report contributed to a broader decline in risk sentiment. Investors remain fearful that persistent inflation could lead the Federal Reserve to prolong maintaining historically high interest rates.
Market sentiment depends on the prospects for price and interest rate growth, with investors looking for signs of stabilization in the labor market and inflationary pressures. However, data from the latest jobs report did not align with these expectations. The U.S. economy added 303,000 jobs in March, surpassing the forecast of 200,000 jobs projected by economists surveyed by FactSet.
Aside from Bitcoin, Ether, the second-largest cryptocurrency by market value, saw a 4% decline to $3,200. Smaller altcoins also saw declines, with Solana falling 10% and Ripple falling 1%. Memecoins, including Dogecoin and Shiba Inu, were not immune to the downtrend, posting losses of 8% and 2%, respectively.
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