The cryptocurrency market continues to experience volatility as traders await the release of U.S. payrolls, which can impact expectations around Federal Reserve’s interest rate policies and influence global markets.
Cryptocurrency Market Update: ADA, DOGE Down 4% Amid Payroll Anticipation
Cardano‘s ADA and dogecoin (DOGE) have seen a decline of 4% in the past 24 hours. This drop is part of broader losses among major tokens as traders await the release of U.S. payrolls.
Market Volatility Ahead of Payrolls
The anticipation of strong job growth can lead to fears of inflation and increased interest rates, while weak data might signal an economic slowdown. This uncertainty affects expectations around Federal Reserve‘s interest rate policies, influencing markets globally.
Market volatility refers to the fluctuations in stock prices over a specific period.
It can be caused by various factors, including economic changes, geopolitical events, and investor sentiment.
According to a study, 75% of stocks experience price movements due to market volatility.
In the US, the S&P 500 index has shown an average annual return of 10%, but with significant fluctuations between years.
Understanding market volatility is crucial for investors to make informed decisions and manage risk effectively.
Bitcoin (BTC) is trading at just over $97,300 in European morning hours Friday, down 1.7% in the past 24 hours. The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization, has fallen 2.3%.
Expert Insights on Market Volatility
Some traders point to continued volatility in crypto markets next week. ‘It’s been a volatile week as China has proved that it can take measures against new tariff policies,’ said Jeff Mei, COO at BTSE. ‘Additionally, we’ve yet to see Trump tariffs hit the EU, so markets will likely continue to be fluctuating through the next few weeks.’
Influence of U.S. Non-Farm Payrolls on Bitcoin
The U.S. Non-Farm Payrolls (NFP) is a monthly report detailing job creation, unemployment rate, and wage changes which influences markets by affecting expectations around Federal Reserve‘s interest rate policies. Positive payrolls might bolster bitcoin — and the broader crypto market — if it spurs a risk-on market mood and vice-versa.
The U.S. non-farm payroll, also known as the 'non-agricultural payroll' , is a monthly economic indicator that measures the change in employment levels excluding farm workers and the armed forces.
The Bureau of Labor Statistics (BLS) releases this data on the first Friday of every month.
It provides insights into the overall labor market conditions, including job growth, unemployment rates, and wage trends.
A strong 'non-farm payroll' report can boost consumer confidence and influence monetary policy decisions.
Bitcoin’s price reacts to this data through shifts in risk sentiment, liquidity, and the dollar’s value. Weak job growth can lead to fears of an economic slowdown, lowering rates expectations and affecting currency and bond yields.
