Why a strong jobs report hit Bitcoin and Ethereum harder than the stock market
The cryptocurrency sector currently faces macroeconomic headwinds that dictate valuation changes across all major digital tokens. Bitcoin recently declined by 1.34 per cent to US$79,113.15 in a single 24-hour period. Ethereum followed a similar trajectory, dropping 1.17 per cent to trade at US$2,487.12. This synchronised pullback is clear evidence that digital assets no longer operate […] The…
The recent strong US jobs report, which added 162,000 jobs in August and exceeded analyst expectations, has led to a significant market reaction affecting both Bitcoin and Ethereum. The sector-wide decline in these digital assets, with Bitcoin dropping 1.34% to US$79,113.15 and Ethereum falling 1.17% to US$2,487.12, demonstrates that cryptocurrencies are highly sensitive to traditional economic indicators and central bank policies.
The correlation between Bitcoin and the S&P 500 stands at 93% over the past week, indicating that top-tier cryptocurrencies now function as macro assets that closely track shifts in liquidity and interest rate expectations. The surge in US Dollar value and rising Treasury yields, driven by the positive employment data, have naturally put pressure on risk assets across the board, contributing to the sell-off in digital assets.
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