Minutes ago, the king of cryptocurrencies rose to $42,497. We are witnessing new yearly highs every day. While this is a common occurrence during bullish periods, there are also triggers behind it. The recent surge was caused by data released after the opening of the US markets. On the other hand, cryptocurrencies were also on the agenda of the US Treasury Secretary.
Why Did Bitcoin Rise?
Why do macro developments concern us? The answer to this question is provided by the price movements associated with recent events. For example, the price of <a href="https://en.coin-turk.com/anthony-scaramucci-the-current-state-of-the-financial-system-and-bitcoins-role/”>BTC remained calm until 18:00 GMT and then reached its yearly high of $42,497 after the release of the JOLTS data. This shows that US employment data has a significant impact on the price of Bitcoin and the overall cryptocurrency market.
The data released by the Bureau of Labor Statistics was related to job openings. It would be positive if it came in below expectations, and it did. The decrease in job openings to 8.7 million in October indicates a loosening in employment. This is something that the Fed has been concerned about in its fight against inflation.
Economists expected job openings in October to be 9.3 million. While most sectors experienced a decline in the number of existing jobs, the sharpest decreases in job openings were seen in the financial activities and retail sectors.
The return of employment data to 2021 increases optimism about the expected interest rate cuts by the Fed next year. If the decline in inflation continues at the same pace, they may even make rate cuts of more than 100bps in 2024. Of course, this would stimulate demand in the risk markets. As a result, it supports the rise of cryptocurrencies.
US Treasury Secretary and Cryptocurrencies
They initially ignored cryptocurrencies and then began to terrorize them. Later, they took a relatively moderate approach to Bitcoin and targeted the rest of the industry. After a long process, they have been working to regulate the sector since 2021.
The US has not yet taken convincing steps regarding cryptocurrency regulations. Although two bills have been passed by committees, they have not been voted on in the House of Representatives and have not naturally gone to the Senate.
Today, Treasury Secretary Yellen stated that stablecoins require legal supervision and action must be taken. She has said the same thing several times before, even in November 2022. However, nothing has changed because Gary Gensler of the Democratic Party is pressuring his party members by stating that cryptocurrency does not need regulation and that existing laws are sufficient. One of the two bills pending in the House of Representatives is related to stablecoins, and its chances of becoming law are low even in 2024 due to weak support from Democrats.
