The cryptocurrency market has experienced a turbulent start to the year with Bitcoin (BTC) falling below $23,000, Ethereum (ETH) shedding 1.4% in the past 24 hours and the total market capitalisation of the entire cryptocurrency market dropping 2.39%.
The US Bureau of Labor Statistics recently released data showing the labour market added 517,000 jobs in the first month of 2023, with the unemployment rate falling to its lowest level in over half a century.[0] This unexpected growth exceeded the 188,000 estimated by economists.[1]
The Federal Reserve’s 25 basis point (bps) increase bolstered markets’ optimism that bankers were succeeding in their quest to staunch stubbornly high prices.[2] However, less than 1% of the companies in the S&P 500 reported earnings that were above estimates, according to FactSet data, which is below the five-year average of 8.6%, and the 10-year average of 6.4%.[3]
Joe DiPasquale, CEO of crypto fund manager BiBull Capital, commented that the crypto markets are “optimistic” after the modest rate increase and Bitcoin will “oscillate around the $20K support level for the next few months, barring other unforeseen events and market action.”[3]
The major digital asset prices were trading flat over the weekend, with Bitcoin down 1.7% and Ethereum in the red 2.3%.[3] Bitcoin is currently trading at $22,829 and Ethereum at $1,622.[4] The total crypto market cap is $1.06 trillion and the total crypto market volume over the last 24 hours is $48.90 billion, with the total volume in DeFi at $5.31 billion, 10.86% of the total crypto market 24-hour volume.[5] The volume of all stable coins is now $42.41 billion, which is 86.72% of the total crypto market 24-hour volume.[6]
The Bitcoin price is currently fluctuating between $22,000 and $23,500 and if bulls regain the upside momentum, BTC is likely to retest its intraday highs just above $24,000.[7] If the BTC price sustains above $23,000, it could set the course further to $25,000 and beyond.[8]
All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com.[9]
0. “What January US Jobs News Means For Bitcoin (BTC) Next Month” CoinGape, 3 Feb. 2023, https://coingape.com/us-jobs-january-news-means-for-bitcoin-btc-price-in-coming-months/
1. “Bitcoin sees $23.3K amid market reaction to US jobs report” CoinJournal, 3 Feb. 2023, https://coinjournal.net/news/bitcoin-slips-amid-market-reaction-to-us-jobs-report
2. “First Mover Asia: Bitcoin dips into red but holds strong above $23.5k” FXStreet, 3 Feb. 2023, https://www.fxstreet.com/cryptocurrencies/news/first-mover-asia-bitcoin-dips-into-red-but-holds-strong-above-235k-202302030348
3. “First Mover Asia: Bitcoin Not Ready to Soar as Investors Await Fed Chair Speech, More Earnings” Yahoo! Voices, 6 Feb. 2023, https://www.yahoo.com/now/first-mover-asia-bitcoin-not-010236742.html
4. “First mover Asia: Cryptos shrug off latest US productivity, jobs data, Bitcoin hovers at $22.9K” FXStreet, 27 Jan. 2023, https://www.fxstreet.com/cryptocurrencies/news/first-mover-asia-cryptos-shrug-off-latest-us-productivity-jobs-data-bitcoin-hovers-at-229k-202301270758
5. “Cryptos Slide As Jobs Data Dashes Hopes Of A Quick Fed Pivot” RTTNews, 6 Feb. 2023, https://www.rttnews.com/3342054/cryptos-slide-as-jobs-data-dashes-hopes-of-a-quick-fed-pivot.aspx
6. “Is Bitcoin Awaiting to Bounce Back After The Fed Chair’s Speech?” The Coin Republic, 7 Feb. 2023, https://www.thecoinrepublic.com/2023/02/06/is-bitcoin-awaiting-to-bounce-back-after-the-fed-chairs-speech
7. “Bullish for Bitcoin and the whole industry: GDP rises 2.9% in fourth quarter – This is yet to come” Crypto News Flash, 27 Jan. 2023, https://www.crypto-news-flash.com/bullish-for-bitcoin-and-the-whole-industry-gdp-rises-2-9-in-fourth-quarter-this-is-yet-to-come
8. “Bitcoin Price and Ethereum Prediction: What Powell’s Speech Could Mean For Crypto Prices?” Cryptonews, 7 Feb. 2023, https://cryptonews.com/news/bitcoin-price-ethereum-prediction-what-powells-speech-could-mean-for-crypto-prices.htm
9. “Crypto markets holding tight ahead of today’s speech from US Federal Reserve” City A.M., 7 Feb. 2023, https://www.cityam.com/crypto-markets-holding-tight-ahead-of-todays-speech-from-us-federal-reserve/