- Employers in the United States added 263,000 jobs in September, slightly more than projected but still suggesting a declining labour market.
- Economists predicted that the unemployment rate would remain at 3.7%, but it fell to 3.5%, a level that was last seen in July.
- Bitcoin (BTC) declined roughly 2% after the report was published.
- Most altcoins are stable, with very modest daily losses. However, on a weekly basis, XRP has emerged as the strongest among the major caps.
- Binance’s BNB coin, worth $570 million, was stolen in a major crypto hack.
- The US CPI data will be issued on Thursday, October 13th.
Last Monday, the price of the most popular cryptocurrency surged to a three-week high of almost $20,500. Despite failing to rise further, it managed to hold above the desired $20,000 line for a few days. But after the release of the most recent US employment report, the situation changed. Despite exceeding expectations, it sent BTC much lower, and the currency dropped by roughly $1,000 in just an hour.
More pain was experienced over the weekend as bitcoin plummeted below $19,300. It recently recovered and climbed over $19,600, but the bears returned and drove it back down to just over $19,000, setting a new weekly low. As its dominance over other cryptocurrencies remains at 39.5%, Bitcoin’s market capitalization has taken a slight hit and is now below $360 billion.
According to data provided by Santiment, Ripple [XRP] achieved the largest daily total of newly generated addresses on the network since its last high in July on October 8. Santiment reports that the number of new addresses established on the XRP network on October 6 reached 2,773, which is a record high for the network since 2,866 new addresses were created on July 2. The network’s new addresses have surged recently, pushing the price of the cryptocurrency above $0.52. beginning a “little decoupling” from the rest of the cryptocurrency market, which primarily experienced losses on the same day.
XRP has been able to achieve an 8% price increase so far in October.
The MVRV-Z score for Bitcoin is a metric that divides the market capitalization of Bitcoin by the cost basis of positions in the market; it essentially indicates how much of the market is made up of profitable or unprofitable positions. The statistic can be used to determine whether BTC is overvalued or undervalued and can also spot cyclical movements. Bitcoin has been in a zone that represents a cyclical low since mid-June. The recent buildup of stronger hands, such as long-term holders, is consistent with this story.
On a macroeconomic level, the newly elected UK government made a significant policy reversal by deciding to take back the projected tax cuts, which drove the GBP into a downward spiral. The most recent U.S. jobs data indicated last week that the labor market has cooled, but not enough for the Fed to stop raising interest rates. Before the Fed-pivot trade is actually in play, we must first see some reliable signs of an economic slowdown. This week will see the release of the FOMC minutes and the CPI statistics, which will help to further paint the outlook. Some would argue that during this specific bad market, cryptocurrency has not been a very effective inflation hedge. While correct (so far), it’s crucial to keep in mind that cryptocurrency might act as a deflation hedge rather than an inflation hedge.
