(Bloomberg) -- Bitcoin fell after the monthly US jobs report showed that payrolls expanded at a faster-than-expected pace and the unemployment rate fell, bolstering expectations that the Federal Reserve will continue the aggressive rate hikes that have pulled down risk assets.
Bitcoin, the largest digital coin by market value, dipped as much as 3.6% on Friday, its largest intraday drop over a week. The token traded as low as $19,333. Ether dropped as much as 3.4%, with other so-called altcoins like Solana and Avalanche also declining.
“I think we need to respect the down trend and assume that the bear-market cycle is still dominant,” says Katie Stockton, founder of Fairlead Strategies LLC.
The jobs report showed that the labor market has been resilient in the face of the steepest rate hikes in decades, with wages continuing to rise by an elevated pace in the face of inflation. That strength dulled investors’ hopes that Fed Chair Jay Powell may slow the pace of the monetary policy tightening.
“The jobs report was bearish for crypto and stocks, as the data came in hotter than expected,” said Marcus Sotiriou, an analyst at GlobalBlock. He added that consumer price index data coming next week should give added clarity on where the Federal Reserve may go next.
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