The US labor market shows signs of cooling, leading to lower bond yields and a bullish S&P 500, while Bitcoin remains steady.
Key Takeaways
- US labor market shows signs of cooling, impacting bond yields and Federal Reserve policy.
- Bitcoin remains relatively stable, trading at $34,726 with a market cap of $677 billion.
- S&P 500 surges by 4% in a week, affecting market confidence and the crypto market.
- Altcoins like Ethereum (ETH), Solana (SOL), Cardano (ADA), and Chainlink (LINK) make strong gains amid falling bond yields.
Positive Upgrades for Bitcoin
On Friday, November 3, the US labor market released October’s job data, revealing signs of a slowdown. This development was welcomed on Wall Street, as it suggests a more measured approach by the Federal Reserve regarding monetary tightening.
Despite the cooling bond yields and labor market, Bitcoin’s price remained relatively stable, with a negligible 0.17% movement, trading at $34,726, and a market cap of $677 billion.
Bitcoin Steady But Altcoins Rally As US Labour Market Cools Downhttps://t.co/pA4wv5cFzI pic.twitter.com/XZ8ckPhgP3
— John Morgan (@johnmorganFL) November 4, 2023
The recent fluctuations in Bitcoin’s price can be attributed to macroeconomic shifts globally. Notably, the S&P 500 posted an impressive 1% surge on Friday, marking its most substantial gain in 2023. Over the past week, the S&P 500 has risen by 4%, instilling confidence in the market.
Altcoins Pose Strong Rally
According to on-chain data from Santiment, the S&P 500 outperformed Bitcoin and Ethereum as various sectors gained attention. The following week will determine if the crypto market remains correlated with equities or if a bullish trend is imminent. Some analysts are already predicting a significant $200,000 price target for Bitcoin.
The market’s “fear gauge,” the VIX, witnessed its most substantial five-day decline in 21 months. Treasury yields increased across the board, while the US dollar experienced its most substantial drop since July. Additionally, oil prices dipped below the $81 per barrel threshold.
Traders, according to Fed swaps, currently assign only a 16% probability of another interest rate hike by January. Furthermore, they have fully factored in a rate cut by June, moving it up from the earlier expectation of July.
To Conclude
The US labor market’s cooling effect and its impact on bond yields signal a potential shift in the Federal Reserve’s monetary policy. While Bitcoin remains resilient, the surge in the S&P 500 demonstrates renewed market confidence.
Altcoins such as Ethereum, Solana, Cardano, and Chainlink have capitalized on the falling bond yields, showcasing their resilience and potential for growth in the crypto market. As the macroeconomic landscape continues to evolve, the crypto market’s correlation with traditional equities remains a key factor to watch. Additionally, the prospect of Bitcoin reaching a $200,000 price target highlights the optimism within the crypto community.
