- The crypto world had undergone continuous losses and declines.
- Leading cryptocurrencies showed a decline in their prices.
- The traditional financial markets also exhibit a major decline.
Following the release of the US job reports, the crypto space underwent major losses, leading to economic damage. The leading cryptocurrencies including bitcoin and ether were showing a significant decline in their prices for the past weeks, along with the other traditional risk assets.
The rampant inflation in the coins resulted in the fall of their prices. Bitcoin (BTC) fell suddenly, decreasing 1.9% on heavy volume. Though there was a slight recovery in its price in the subsequent hours, the price began showing a negative inclination.
Ether, the second-largest cryptocurrency by market capitalization, showed a similar pattern in its price decline. Though ether exhibited the week’s high on October 6, with the release of the US job reports, it underwent a major decline of almost 1.7% in its price.
Also, the CoinDesk Market Index (CMI), which measures the performance of a group of cryptocurrencies declined -0.80%, indicating a major fall in almost all digital assets.
Additionally, while considering the traditional financial markets, the Dow Jones Industrial Average (DJIA), tech-heavy Nasdaq Composite, and S&P 500, though having strong technology components, were down 2.1%, 3.8%, and 2.8%, respectively.
Significantly, the US job growth slowed down in the previous month, tending investors to anticipate a major hike from the Fed. The Portfolio Manager at Quilter Investors, Paul Craig commented that the job reports indicate another hike from the Fed.
Craig put forward his understanding while discussing the US job reports:
With this jobs report it seems clear we are on course for another significant hike from the Fed, with the market pricing in a 75 [basis point] rise in interest rates at its next meeting,” said Paul Craig, portfolio manager at Quilter Investors.
Furthermore, the non-farm payrolls increased by 263,000, which is a 17% decrease from the previous month.
Notably, the unemployment rate declined to 3.5%, and the labor participation rate was 62.3% similar to the last month’s rate which was 62.2%. The employment rate clearly indicates the slowing growth of the economy.
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