- Cryptocurrency prices rose slightly on Friday morning.
- Bitcoin price jumped above $27,000 while the total market cap stayed at $1.08 trillion.
- The US will publish the latest non-farm payrolls (NFP) data on Friday.
Cryptocurrency prices held quite well as investors waited for the upcoming US non-farm payrolls (NFP) data. Bitcoin was trading at $27,500, higher than last month’s low of $24,800 while the total market cap of all coins remained above $1.08 trillion.
Quant’s QNT coin rose by 2% while Toncoin, Stacks, and Uniswap jumped by between 1% and 5% on Friday morning. Other top performers were cryptocurrencies like Trust Wallet Token (TWT), Avalanche, and THORChain.
Read more: How to buy Uniswap.
All these crypto tokens have held steady in a difficult week where America’s bond yields surged. The 30-year government bond yield soared to 5% for the first time since 2007. Similarly, the 10-year yield rose to 4.8%. As a result, the iShares 20+ Year Treasury ETF (TLT) and Vanguard Long-Term Bonds ETF (VGLT) plunged to the lowest point since 2014.
The next important news that will move these bonds and cryptocurrencies will be the latest US non-farm payrolls (NFP) data. Most economists expect the data to show that the American economy added over 160k jobs in September after it added 189k in the previous month.
Wage growth is expected to come in at 4.3% while the unemployment rate will be 3.7%. Strong jobs numbers will push US government bonds higher since they will give the Federal Reserve more cover to maintain a hawkish tone.
We saw this happen this week when ADP published weak private payrolls data. According to the company, the economy added just 89k jobs in September, down from 160k in the previous month.
Bond yields and the US dollar index (DXY) retreated while American stocks and cryptocurrencies rose. In the past, however, the jobs report by ADP tends to be highly different from the official one.
On the other hand, higher wages, lower unemployment rate, and a strong non-farm payrolls report will push altcoins like Quant, Stacks, and Toncoin much lower. Bond yields will also rise as investors anticipate more Federal Reserve tightening.
The Fed has been quite aggressive in the past few months as inflation has held steady. The most recent data showed that the headline consumer price index (CPI) figure rose to 3.7% in August. And with the price of crude oil rising, there are hopes that inflation will continued rising.
The challenge for the Fed is that it has no control over the key inflation driver. For example, it cannot push for more oil production in the US or force OPEC+ to do more.
