Cryptos Extend Gains Amidst Weak Labor Market Update

Cryptocurrencies jumped more than 4 percent in the past 24 hours amidst a weaker-than-expected job market update that renewed rate cut hopes. Indicators for hiring as well as earning declined, while the unemployment rate unexpectedly increased.

Data released by the U.S. Bureau of Labor Statistics just a while ago showed an addition of 175 thousand to non-farm payrolls in the month of April, versus 315 thousand in the previous month and market expectations of 243 thousand. The unemployment rate which was expected to remain steady at 3.8 percent increased to 3.9 percent. Average hourly earnings (month-on-month) which was expected to be steady at 0.3 percent unexpectedly declined to 0.2 percent. Average hourly earnings (year-on-year) declined to 3.9 percent, from 4.1 percent earlier, beating market expectations of a reading of 4 percent.

With the cooling labor market expected to reduce the pressure on inflation, expectations of a rate cut increased. The probability of a Fed rate cut in June stood at 13.8 percent, versus 14.4 percent a day earlier. The probability of a rate cut in July increased to 40.4 percent, from 33.8 percent a day earlier. Rate cut probability for the September review increased to 71.4 percent, from 61.6 percent a day earlier and for the November review to 82.7 percent, from 73.2 percent, a day earlier. Expectations of a rate cut in December also jumped to 92.1 percent, from 86.1 percent a day earlier.

Renewed rate cut hopes exacerbated the greenback’s retreat, dragging the 6-currency Dollar Index more than half a percent to 104.76, from 105.30 a day earlier. The Dollar’s weakness lifted sentiment for cryptocurrencies and with it the overall crypto market capitalization to $2.28 trillion, from $2.19 trillion a day earlier.

Bond yields also eased across tenors and regions as markets priced in more decisively the likelihood of a Fed rate cut. Ten-year U.S. bond yields eased closed to 2 percent and is hovering near 4.48 percent as compared with 4.57 percent a day earlier.

Data released by Farside Investors that showed net outflow from Bitcoin Spot ETF products declining to $34.4 million on Thursday, from the record high outflow of $563.7 million on Wednesday, also bolstered crypto market sentiment.

Bitcoin jumped 5.4 percent overnight to trade at $61,765.12, around 16 percent below the all-time high. The overnight gains helped restrict weekly losses to 4.1 percent and increase year-to-date gains to more than 46 percent. Bitcoin which touched a high of $61,766.51 and a low $58,302.50 in the past 24 hours, currently dominates 53.05 percent of the overall crypto market.

Ethereum gained 3.1 percent in the past 24 hours to trade at $3,063.22. The 24-hour trading range was between $3,064.12 and $2,953.27. Ether erased 2.8 percent in the past week but is holding on year-to-date gains of almost 34 percent. Ether currently dominates 16.04 percent of the overall crypto market.

4th ranked BNB (BNB) added 3.5 percent overnight to trade at $577.53. With gains of 4.2 percent, BNB is the highest-ranking crypto to trade with gains over the 30-day horizon.

5th ranked Solana (SOL) also rallied 5.1 percent in the past 24 hours to trade at $142.98.

7th ranked XRP gained 2.1 percent overnight to trade at $0.5249. With a marginal gain of 0.26 percent, XRP is the highest-ranking crypto to trade with gains on a weekly basis. With losses of 14.6 percent in 2024, XRP is also the highest-ranking crypto to trade with year-to-date losses.

8th ranked Dogecoin (DOGE) jumped 6.6 percent overnight to trade at $0.1385.

9th ranked Toncoin (TON) leaped more than 14 percent overnight to trade at $5.52.

10th ranked Cardano (ADA) added close to 2.9 percent overnight to trade at $0.4657.

47th ranked Arweave (AR) topped overnight gains with a surge of more than 18 percent. 9th ranked Toncoin (TON) followed with overnight gains of more than 14 percent. 94th ranked JasmyCoin (JASMY), 54th ranked Bonk (BONK), 73rd ranked Pendle (PENDLE) and 97th ranked ORDI (ORDI), all added more than 11 percent in the past 24 hours.

66th ranked Wormhole (W) and 99th ranked Gnosis (GNO) are the only cryptocurrencies among the top 100 to record overnight losses of more than a percent. W has slipped 2.6 percent overnight followed by GNO that recorded overnight losses of 1.1 percent.

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