TL;DR
- Bitcoin briefly surpasses $100K: Driven by a mixed jobs report in the U.S., but drops to $97,861, with a 1.36% increase in the last 24 hours.
- Economic factors affect the market: The low unemployment rate and Federal Reserve policy influence the behavior of the crypto market.
- Bullish reaction: The total market capitalization rises by 1.5%, with increases in several cryptocurrencies.
The crypto market has experienced a series of movements due to high volatility, influenced by various economic and political factors.
Bitcoin Fails to Stay Above $100K, but Remains Up
Bitcoin’s price briefly surpassed $100,000 per unit, driven by a mixed U.S. jobs report that showed a decline in unemployment but a slowdown in job growth. Subsequently, BTC dropped to $97,861, though it still recorded a 1.36% gain in the last 24 hours.
The U.S. Department of Labor’s report showed strong wage growth and a decrease in unemployment, from 4.1% to 4%. This suggests consumers are likely to keep spending. The low unemployment rate typically leads to an increase in consumer spending, which can put upward pressure on prices.
The Federal Reserve has cut interest rates in 2024 after raising them in 2022 to control inflation. The low unemployment rate may cause the Federal Reserve to keep rates unchanged.
On the other hand, Bitcoin (BTC) remains volatile due to factors such as tariff threats from President Donald Trump towards Mexico and Canada, as well as the impact of tariffs on China. Despite the pause in tariffs with its neighbors, tariffs on Chinese products were implemented. Additionally, the massive sell-off related to the Chinese AI company Deepseek deeply affected the crypto market.
Bullish Market Reaction
According to CoinMarketCap, the total crypto market capitalization has increased by 1.5% in the last 24 hours, currently valued at $3.19 trillion. The U.S. reports and Bitcoin’s movements have had a notable impact on the prices of major cryptocurrencies. With the exception of Ethereum (ETH), all others have shown varying levels of increase.
- Ethereum (ETH): $2,700.41 (-0.15%)
- BNB (BNB): $581.78 (+1.27%)
- XRP (XRP): $2.47 (+7.39%)
- Cardano (ADA): $0.728 (+3.32%)
- Solana (SOL): $196.85 (+3.75%)
- Polkadot (DOT): $4.76 (+5.54%)
- Dogecoin (DOGE): $0.253 (+2.60%)
- Litecoin (LTC): $104.67 (+4.07%)
- Polygon (MATIC): $0.308 (+3.16%)
- Avalanche (AVAX): $25.19 (+1.70%)
However, the market has not yet recovered from the recent hits it suffered. Most cryptocurrencies show weekly losses ranging from 5% to even exceeding 20% of their value.
