Bitcoin Soars Past 17K, Stocks & Bonds Follow Suit After Fed Decision
• Bitcoin’s price soared past $17,000 for the first time this year, fueled by the US Fed’s decision to slow down their rate hikes.
• Solana and Cardano’s prices rose more than 30% late last night, with Non-Farm Payrolls reports from the BLS indicating better-than-expected results.
• The ISM services index fell below 50 for the second month in a row, indicating economic contraction.
The US Federal Reserve’s decision to slow down their rate hikes has resulted in a surge in Bitcoin’s price. For the first time this year, BTC has soared past the $17,000 mark. This surge in prices is not limited to Bitcoin, however, as stocks and bonds have followed suit.
The Non-Farm Payrolls report from the Bureau of Labor Statistics (BLS) had initially been seen as the primary determinant for the US Fed’s inflation rate hikes. However, the price surge in BTC, stocks, and bonds happened 90 minutes after a sharp drop in the ISM non-manufacturing index. The index dropped from 56.5 to 49.6, indicating economic contraction for the first time since May 2020.
The results from the December Non-Farm Payrolls report were better-than-expected. For instance, the unemployment rate was 3.5 percent compared to analyst’s prediction of 3.7 percent, while there were an additional 223,000 jobs, which was 23,000 higher than expected. This is a significant reduction when compared to the 300,000 jobs often seen before June 2022.
The ISM services index was below 50 for the second month in a row, at 48.4. This, along with the results of the Non-Farm Payrolls, has led to a surge in the prices of Solana and Cardano, with both soaring more than 30 percent late last night.
The surge in Bitcoin and other securities prices indicates that investors are confident in the US economy and that the Fed’s decision to slow down their rate hikes has been welcomed by the markets. The future looks bright for the crypto market, and it seems that Bitcoin’s price is only going to continue to rise in the coming months.