Why is bitcoin rallying 10% Friday? Crypto clambers to perch above $40,000 following jobs
Bitcoin was in rally mode on Friday, ascending to a two-week high above $40,000.
More specifically, the cryptocurrency
was trading at around $40,245 on Friday with a nearly 10% gain over the past 24 hours, according to CoinDesk data. Bitcoin is still about 42% below its all-time high of $68,991 in November.
The move for the crypto comes amid a stronger-than expected jobs report, which some market participants anticipate may strengthen the Federal Reserve’s resolve to tighten its monetary policy aggressively this year.
The U.S. gained 467,000 jobs in January and hiring was also much stronger at the end of 2021 than originally reported, data released Friday shows. Economists polled by Wall Street had forecast 150,000 new jobs in January.
“One of the most difficult environments for Bitcoin to face is surging Treasury yields,” Edward Moya, senior market analyst at Forex trading platform OANDA wrote in Friday notes.
However, “bitcoin shrugged off the payroll slump and is rallying on momentum buying,” Moya wrote.