The most popular cryptocurrency in the world, Bitcoin, recently had a sharp price decline, falling to $27,715 on the Bitstamp platform after losing around 2% of its value in a couple of minutes. In reaction to the decline, analytics company 100eyes Crypto Scanner issued an abnormal volatility notice.
https://x.com/100eyesCrypto/status/1710279118963519661?s=20
Another blockbuster jobs report
The latest price decline is said to have been caused by the U.S. recent employment statistics. The Labour Department reported a gain of 336,000 jobs in September, the largest increase since January, demonstrating the resilience of the labour market.
The results considerably above experts’ predictions and revealed a steady rising trend, with the U.S. adding 266,000 jobs on average each month during the previous three months. A number of industries, including leisure and hospitality, experienced significant growth.
Long-term bonds were influenced by these strong employment figures, which sparked a sell-off and increased rates to their highest levels in 16 years.
The Federal Reserve may increase interest rates even more as a result of the better-than-anticipated jobs report, which accounts for the decline in the price of bitcoin.
A silver lining?
Mike Bucella, a former general partner at BlockTower, has expressed his opinion that higher interest rates may have both positive and negative effects.
Bucella pointed out that risk assets, such as cryptocurrency, typically experience declines as interest rates rise.
On the bright side, the cycle’s main use case—on-chain USD—is further supported by the growing rates. On-chain treasuries are clearly in demand, which portrays them as a reliable and alluring asset.
