The recent U.S. employment report for August has sparked a significant rally in the cryptocurrency market, with Bitcoin surpassing $113,000 and altcoins experiencing notable gains. This surge is attributed to the market’s interpretation of the stagnant data as a signal for potential monetary easing, leading to a broad crypto rally on Friday.
The U.S. Bureau of Labor Statistics reported that nonfarm payrolls added only 22,000 jobs in August, indicating a period of prolonged stagnation since spring. The unemployment rate remained steady at 4.3%, but the report also highlighted a rise in long-term unemployment and a dip in the labor force participation rate.
Crypto Market Reaction
Following the release of the employment report, the total cryptocurrency market capitalization rose by over $60 billion, reaching nearly $3.9 trillion. Bitcoin (BTC) led the charge with a 2.06% climb, breaching $113,357 and establishing a firm bullish tone for the entire digital asset complex. Ethereum (ETH) also posted a solid 1.4% gain, accompanied by a significant 6.8% surge in its trading volume, which ballooned to $40.56 billion.
Altcoin Performance
The rally revealed a strong appetite for both established altcoins and high-beta speculative plays. Cardano (ADA) outperformed the broader market, jumping over 3.25%, while the Layer 1 protocol Sui (SUI) emerged as the day’s standout performer, vaulting 4% to trade at $3.44. Memecoins such as Shiba Inu (SHIB), Pepe (PEPE), FLOKI, and dogwifhat (WIF) also saw significant gains, with increases of 1.93%, 2.51%, 3.06%, and 3.76%, respectively.
This uniform green across a diverse set of assets underscores a market-wide bet on easing financial conditions, rather than isolated fundamental developments. The crypto market’s reaction to the employment report suggests that traders are interpreting the data as a signal for potential monetary easing, leading to a risk-on sentiment.
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