Crypto Market Rises Another $1 Trillion On Good “Bad” News As A Bullish Rally Could Be In Play
The two biggest cryptocurrencies, Bitcoin and Ethereum, surged following today’s poor US unemployment report. At the same time, total crypto the market cap has once again reached the all-important $1 trillion mark.
Despite rising unemployment, the price of BTC rose nearly 5%, while the ETH price jumped 8.5%. It would seem that with a deteriorating economy, one would expect the top two riskiest financial market assets to decline, but investors have once again witnessed the paradox of good “bad” news.
According to the well-established narrative, the positive was triggered by speculation that for the US Fed, rising unemployment could be an argument to revise its hawkish monetary policy and slow the pace of Fed rate hikes. That said, the downtrend is present as the regulator focuses on peaking the rate hike, which follows Fed Chief Jerome Powell’s speech yesterday.
The traditional links of the crypto market
It seems like a waste of time to regret that the crypto market has become linked to traditional finance, while the trend towards its institutionalization continues. Thus, according to the latest financial results report of the leading US cryptocurrency exchange, Coinbase, 83.6% of the exchange’s total trading volume was represented by institutional investors, despite a drop of $58 billion.
Coming back to the subject of Bitcoin and Ethereum, it is also important to note that the altcoin, after exactly one year, was able to overtake the main market coin again in terms of trading volume on Coinbase.