The crypto market plunged alongside stocks after the highly anticipated jobs report showed the labor market is still problematic for assets and could push the Federal Reserve to hike rates aggressively.
Bitcoin Plunges to $19,300 Following September’s Jobs Report
On Friday, the Labor Department reported that the U.S. economy added 263,000 jobs in September, compared with the Dow Jones estimate of 275,000. The unemployment rate plunged to 3.5% from 3.7% in the previous month.
“The jobs report points to no change of tune on the horizon for the Fed, so we continue to expect firm interest rates which also adds pressure to crypto markets,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
Cryptocurrencies’ correlation with stocks has weakened in recent weeks but remains high.
“Crypto looks to be at an important technical juncture here where it looks like it’s trying to carve out a bottom, but feeling heavy,” he added. “I still think it, more likely than not, breaks to the downside given rising interest rates and risk-off sentiment, but so far it’s a surprising effort to hold the line.”
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