• Bitcoin spiked to $16,795 in response to strong labor market data.
• The U.S. Bureau of Labor Statistics (BLS) released nonfarm payroll data showing 223,000 jobs were added in December 2022.
• This was higher-than-expected, as the forecast was to rise by 200,000 in the same month.
The news of a stronger-than-expected US labor market pushed Bitcoin to its peak levels of $16,795. This happened after the U.S. Bureau of Labor Statistics (BLS) released its nonfarm payroll data which showed that 223,000 jobs were added in December 2022. This was higher than the expected 200,000 jobs that were forecast for the same month.
The positive news of the labor market had an immediate effect on Bitcoin, with the leading cryptocurrency spiking to its peak level in response. This was a 0.7% swing to the upside, showcasing the strength of the crypto asset in the face of such positive economic news.
The labor market data was also a welcome sign that the US economy is recovering from the pandemic-induced slowdown. This was due to the increase in jobs in the hospitality sector, which has been particularly hard hit by COVID-19 restrictions. This can be seen in the fact that leisure and hospitality jobs were up by 355,000 in December.
The strong labor market data also had a positive effect on the stock market, with the S&P 500 index rising 0.4% in response. This is a sign that investors are confident in the US economic recovery and are willing to invest in riskier assets.
Overall, the positive economic news has been seen as a sign of hope for the global economy. With the US leading the way in terms of economic recovery, other countries are likely to follow suit in the near future. This could be a boon for the crypto market, as more investors become confident in the potential of digital assets.