to leave a comment.
▲ Bitcoin (BTC), Ethereum (ETH)/AI-generated image ©
As US employment in July decreased, contrary to market expectations, concerns about interest rate hikes eased, and the cryptocurrency market rebounded across the board. Bitcoin (BTC) recovered to $65,000, and Ethereum (ETH) also surpassed $1,900, but the possibility of stagflation, combining employment contraction and rising prices, remained a medium-term risk.
According to CoinMarketCap at 9:54 PM KST on August 7, the total cryptocurrency market capitalization increased by 0.84% from 24 hours prior, reaching $2.2 trillion. The CoinMarketCap 20 Index (CMC20), composed of major tokens, rose by 1.2%, and the 24-hour liquidation volume was tallied at $179.73 million. The Fear & Greed Index remained at a neutral level of 40, indicating that investor sentiment had not fully recovered despite the price rebound.
Bitcoin traded at $65,282, up 1.33% over 24 hours, and Ethereum recorded $1,933.79, up 1.70%. Solana (SOL) rose 0.88% to $73.89, and Dogecoin (DOGE) increased 1.51% to $0.06998. Hyperliquid (HYPE) showed the strongest performance among top market cap tokens, rising 3.17%. In contrast, XRP (Ripple) fell 0.89% to $1.03, and BNB dropped 0.05% to $592.50, being excluded from the rebound.
The catalyst for the upward trend was the US employment shock. According to the Bureau of Labor Statistics of the US Department of Labor, non-farm payrolls in July decreased by 23,000 from the previous month. The market had expected an increase of 83,000, but the actual figure was 106,000 less than the forecast. Investors interpreted the unexpected decline in employment as potentially reducing the need for further interest rate hikes by monetary authorities and widening the scope for a shift to more accommodative policies in the future. This was the backdrop for the inflow of buying into interest-rate-sensitive cryptocurrencies.
However, the unemployment rate fell from 4.2% in the previous month to 4.1%, also falling below the market expectation of 4.2%. This is a mixed result, making it difficult to conclude that the labor market has deteriorated across the board, as jobs decreased but the unemployment rate also declined. If prices remain high while employment and economic growth slow in the future, stagflation concerns could increase. In this scenario, even if the likelihood of interest rate hikes decreases, a delay in the pace of monetary easing could again limit the upward momentum of risky assets.
In the short term, the key will be whether Bitcoin can stably hold $65,000 and whether the upward trend spreads to overlooked tokens like XRP and BNB. As the current rebound is driven by changes in interest rate expectations due to reduced employment, the upward trend can only continue if subsequent economic indicators support gradual slowing rather than a recession. Conversely, if worsening employment leads to a slowdown in consumption and corporate earnings, or if inflationary pressures persist, this rally may only be a short-term relief rally.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.