Bitcoin climbs to $93,000 as jobs fuel inflation worries

The U.S. economy added more jobs in December than economists expected, which could raise inflation fears Bitcoinlast days price.

US employers added 256,000 jobs in December, according to the Bureau of Labor Statistics (BLS). said Friday. Economists had expected the measure, which measures job creation, to show 160,000 jobs were added last month. Trade economy.

The Bitcoin price It fell after Friday’s press, down 2.2% to $92,700 $94,900 Within 10 minutes. Over the past week, Bitcoin prices have been volatile, dropping as high as $102,300 and as low as $91,000 as macroeconomic signals paint a picture of a strong economy.

The BLS reported Friday that the unemployment rate fell to 4.1% in December, down slightly from 4.2% in November. Normally, falling unemployment can contribute to inflation through rising wages.

“The good news is the bad news,” said Tom Dunleavy, partner at MV Capital Decryption. “Strengthening employment means further inflationary pressures and thus the likelihood of rate cuts.”

Last month, the Federal Reserve warned that it would cut interest rates more slowly this year, cautiously changes in immigration and trade policy According to the minutes of the Fed’s December meeting earlier this week, consumer prices may be affected.

Friday’s labor market index followed readings on economic activity, particularly in the services sector and jobs caused inflationary disturbances among investors earlier this week.

Meanwhile, high bond yields have put pressure on risk assets like stocks and crypto. That’s because higher bond yields lead to lower Bitcoin and stock allocations in investors’ portfolios.

The 10-year Treasury yield rose to 4.78% on Thursday, the highest level since October 2023. TradingView. This was reported by David, the head of the FalconX research department Decryption The rise in yields reflected “a more complicated inflation story than many expected.”

“The market uncertainty is a murky picture of how economic policy might change under the administration,” he said, referring to the President-elect’s potential tariffs. politics.

On Friday, traders remained skeptical that the Fed would cut rates in the coming months. CME FedWatch. A month ago, traders were predicting a 20% chance the Fed would ease financial conditions at its January meeting, but that chance fell to 2.7% on Friday.

While Friday’s earnings report initially weighed down Bitcoin, the cryptocurrency has traded up 1.5% over the past day to around $93,900 as of this writing. At the same time, the price Ethereum and the Solana A little changed, at the moment 3200 dollars and the $186respectively.

Bitcoin’s correlation with the S&P 500 and the Nasdaq has risen as inflation concerns have been focused on, Lovant said, noting “a significant shift in market dynamics.”

“Investors have shifted their focus away from traditional macro factors such as monetary policy to more specific sectoral concerns with the election outcome as the main driver of prices,” he said.

Edited by Stacey Elliott.