The crypto market benefited at the weekend from hopes of a less tight US monetary policy. On Friday afternoon, the price of the best-known digital currency, Bitcoin, jumped above the USD 60,000 mark.
At the day’s high, around 60,750 dollars were paid for one Bitcoin on the Bitstamp trading platform. That was around 1,600 dollars or just under three percent more than the day before. Other crypto assets also rose. This may have been triggered by new figures from the US labor market. The government’s monthly jobs report was significantly weaker than expected: Employment rose less than forecast and unemployment increased – albeit at a low level.
The situation on the jobs market is having an impact on the US Federal Reserve’s monetary policy. Together with tough inflation, the robust labor market is preventing the Fed from cutting interest rates quickly. However, if the trend weakens, monetary easing could come closer again. The US Federal Reserve could now feel encouraged to adopt a cautious monetary policy sooner than expected.
Falling interest rates are generally considered to be beneficial for risky investments, which include cryptocurrencies due to their high price volatility.
