Crypto Market Takes a Dip After Jobs Report
The crypto market took a tumble after the U.S. jobs report, with the CoinDesk 20 index down 3% in the past 24 hours. Bitcoin (BTC), Ethereum (ETH), XRP, and ADA all saw declines of up to 4%.
The initial rally following the jobs report quickly evaporated, sending Bitcoin to its lowest point in a month. This volatility resulted in nearly $50 million in liquidations on crypto derivatives markets, mainly impacting traders who were betting on continued price increases.
Fed Rate Cuts on the Radar
The jobs report, which showed the U.S. economy added 142,000 jobs in August, has left market watchers pondering the Federal Reserve’s next move on interest rates. The Fed is expected to cut rates later this month, with traders anticipating a 25 basis-point cut.
Fed Governor Christopher Waller indicated he will advocate for “front-loading rate cuts if that is appropriate.” However, some analysts believe a smaller cut would be more beneficial for risk assets, as a larger 50 basis-point cut might signal concerns about a potential recession.
The crypto market remains sensitive to broader economic trends and Fed decisions. It will be interesting to see how the market reacts to the Fed’s upcoming interest rate decision.
