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Bitcoin Price Staggers After Strong US Jobs Data: What Next?
Bitcoin price remained in a consolidation mode in the past few days as investors react to the latest American jobs numbers. It was trading at $16,800, where it has been in the past few days. This price is slightly above the December low of $16,460.
US jobs data
The Bureau of Labor Statistics (BLS) published the latest jobs numbers on Friday. These numbers revealed that the American economy was still firing on all cylinders as the labor market tightened. It added 235k jobs in December, higher than the median estimate of 200k.
Another important metric showed that the country’s unemployment rate dropped to 3.5% in December from the previous 3.7%. It remains close to its lowest level in half a century.
The only disappointing number was on wages, which declined slightly. These numbers came at a time when many giant American corporations are announcing mass layoffs. Earlier this week, Salesforce announced that it would slash over 10% of its workforce. Amazon, the giant e-commerce and cloud company, said that it would lay-off over 18,000 people. Other companies like Meta Platforms and Coinbase have announced a series of layoffs.
US jobs numbers are important for Bitcoin prices because of their impact on inflation and the Fed. The Philips Curve says that inflation rises when the unemployment rate is rising. On the other hand, the Federal Reserve tends to tighten when inflation is rising because of its dual mandate.
Therefore, these numbers mean that the Fed has the impetus it needs to continue hiking interest rates. Economists expect that the Fed will hike interest rates by 50 basis points in February followed by two or three 0.25% rate hikes in the next months.
Bitcoin price tends to react negatively to Fed hikes. The 450 basis point hike in 2022 explains why Bitcoin dropped by more than 60% during the year.
Bitcoin price prediction
The BTC/USD exchange rate remained in a consolidation phase as investors watched the US jobs numbers. It was trading at $16,800, which was along the 25-day and 50-day moving averages. The volume of BTC traded has continued falling. It has also formed a head and shoulders pattern. Therefore, there is a likelihood that the coin will soon have a bearish breakout as sellers target the next key support at $16,000.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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