The US economy added more jobs than economists expected in December, which could exacerbate already troubling inflation concerns. BitcoinIts price in recent days.

U.S. employers added 256,000 jobs in December, according to the Bureau of Labor Statistics (BLS). I mentioned Friday. Economists expected this figure, which measures job creation, to show the addition of 160,000 jobs last month, according to Reuters. Trading economics.

the Bitcoin price It fell after Friday's print, falling 2.2% to $92,700 from $94,900 In about 10 minutes. Over the past week, the price of Bitcoin has been volatile, trading as high as $102,300 and as low as $91,000, as macroeconomic signals painted a picture of a strong economy.

The unemployment rate fell in December to 4.1%, a slight decline compared to 4.2% in November, the Bureau of Labor Statistics said Friday. Typically, lower unemployment can contribute to inflation through increased wage growth.

“Good news is bad news,” said Tom Dunleavy, partner at MV Capital. Decryption. “Stronger employment means more inflationary pressures, and therefore less likelihood of interest rate cuts.”

The Federal Reserve indicated last month that it would cut interest rates at a slower pace this year, while being cautious about how it lowers them Shifts in immigration and trade policies That could weigh on rising consumer prices, according to minutes from the Fed's December meeting earlier this week.

Friday's labor market gauge follows economic activity readings - especially in the services sector and job opportunities - Raised inflation fears Among investors early this week.

Meanwhile, rising bond yields have put pressure on risk assets such as stocks and cryptocurrencies. This is because rising bond yields lead to lower allocations to Bitcoin and stocks in investors' portfolios.

The 10-year Treasury bond yield rose to 4.78% on Thursday, hitting its highest level since October 2023, according to Reuters. TradingView. said David, Head of Research at FalconX Decryption The rise in yields reflects “a more complex inflation story than many expected.”

“What adds to the uncertainty in the market is the ambiguous picture of how economic policy will shift under the administration,” he added, referring to the president-elect’s potential tariffs. policy.

Traders became less confident on Friday that the Federal Reserve will cut interest rates in the coming months, favoring June per... CME FedWatch. A month ago, traders expected a 20% chance that the Fed would ease financial conditions at its January meeting, but those chances narrowed to 2.7% on Friday.

While Friday's business report initially pushed the price of Bitcoin lower, the cryptocurrency has traded 1.5% higher over the past day at around $93,900, as of this writing. At the same time, the price reached... Ethereum and Solana Not much has changed, in $3200 and $186respectively.

As inflation concerns have been highlighted, Bitcoin's correlation with the S&P 500 and Nasdaq has increased, representing a "notable pivot in market dynamics," Lawant said.

“Investors have turned their attention away from traditional macro factors such as monetary policy and toward industry-specific concerns, with electoral outcomes emerging as the dominant price driver,” he said.

Modified by Stacey Elliott.