Bitcoin spikes higher as Nonfarm Payrolls puts Fed tapering timeline in doubt

imageCryptocurrency News5 hours ago (Sep 03, 2021 14:12)

© Reuters.

By Samuel Indyk – The price of Bitcoin spiked to its highest level since May on Friday after the latest labour market data from the United States dampened expectations that the Federal Reserve will begin to taper asset purchases as soon as this month.

The US added only 235,000 Nonfarm jobs in August, missing expectations that were calling for a gain of 750,000. The unemployment rate dropped to 5.2%, in line with expectations.

The softer than expected headline should give the FOMC enough reason to delay the start of tapering their $120 billion per month asset purchase programme. Currently the Fed is buying $80 billion worth of Treasury securities and $40 billion of mortgage securities per month.

A delay to tapering should be positive for riskier assets and those sensitive to easy monetary policy – such as Bitcoin and other major cryptocurrencies – which have benefitted from the flood of cheap money provided by global central banks since the pandemic began.

Bitcoin Price

Bitcoin broke above its recent high of $50,500 to its highest level since 14th May. The next key level of resistance for Bitcoin is the 61.8% Fibonacci retracement level from the April high to July low which comes in near $51,100. A break above that level could open the door back towards the all-time high near $65,000 hit in April.  

Other cryptocurrencies

Most other major cryptocurrencies were also benefitting from the softer labour market report, with the best performing cryptocurrency in the top 10 being Solana.

Solana has risen almost 20% in the last 24 hours and is up over 70% in the latest week after hitting an all-time high above $146.00 on Friday.

The cryptocurrency is now the seventh largest by market cap, overtaking Dogecoin which has dropped down to the eighth largest.

One cryptocurrency that hasn’t joined the party today is Cardano, which is currently down around 1.5% in the last 24 hours. The coin has dropped back below $3.00 after breaching that level for the first time on Thursday.

Bitcoin spikes higher as Nonfarm Payrolls puts Fed tapering timeline in doubt

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