- Bitcoin Cash, Bitcoin SV, and Monero prices drifted upwards.
- American stocks plunged, with the Dow Jones shedding over 400 points.
- US bond yields continued rising, with the 2-year jumping to a 16-year high.
Cryptocurrency prices moved sideways while American stocks retreated after the US published encouraging jobs numbers. Bitcoin remained steady above $30,000 while the Dow Jones and Nasdaq 100 indices retreated by more than 1%. Monero, Bitcoin Cash, and Bitcoin SV prices jumped by more than 3%.
US bond yields surge
America’s bond market went through a major sell-off on Thursday after the US published strong jobs numbers. Data shows that the 10-year bond yield rose to 4.05% while the 2-year yield jumped to a 16-year high of 5.06%. Bond prices move in the opposite direction with yields.
America’s bond yields jumped after ADP published strong jobs numbers. According to the report, the economy’s private sector jumped by 497k in June, higher than the median estimate of 228k. This increase was better than the previous 267k.
Additional data showed that the number of job cuts in June came in at 40.7k in June from the previous 80k. This is a sign that the labor market is doing well. These numbers came a day ahead of the coming official non-farm payrolls (NFP) data.
Economists expect the data to show that the economy added over 200k jobs while the unemployment rate dropped to 3.6%. In the past few months, official numbers have been better than estimates.
Meanwhile, data by the Institute of Supply Management (ISM) showed that the services PMI came in at 54.4 in June, better than the estimated 54.1. This is important since the services sector is the biggest part of the American economy.
Fed hikes to continue
Therefore, BCH, BSV, and Monero prices jumped while American stocks dropped as investors predicted that the Fed will deliver more rate hikes. These numbers came a day after the Federal Reserve published hawkish minutes.
These minutes showed that the committee was still concerned about the state of inflation. As a result, the committee members expect that interest rate hikes will continue in the coming months. Analysts expect the Fed will deliver at least two more increases later this year.
Historically, risky assets like cryptocurrencies tend to underperform in a period of high-interest rates. Still, some analysts expect that Bitcoin will continue rising in the coming years. In a statement, the head of Matrixport said that BTC price could jump to over $125k in the next few years. He said:
“On June 22, 2023, bitcoin made a new one-year high, marking the first time in a year. This signal has historically indicated the end of bear markets and the start of new crypto bull markets. If history is any guide, bitcoin prices could climb by +123% over twelve months and by +310% over eighteen months.”
