Bitcoin, XRP Surge Briefly Amid Mixed Jobs Report, Fed Rate Hike Unlikely

Bitcoin and XRP experienced a brief surge before retreating following a mixed U.S. jobs report, which showed a decline in unemployment but a slowdown in job growth. The report also indicated strong wage growth, suggesting that consumers will continue spending and potentially driving up prices.

The Federal Reserve is expected to maintain its current interest rate policy in the short term, given the low unemployment rate. Historically, low unemployment has been associated with increased consumer spending and higher prices. In 2022, the Fed raised borrowing costs to two-decade highs to combat inflation, but it later cut interest rates three times in 2024.

Bitcoin and other cryptocurrencies, along with U.S. equities, performed well in 2022 as the Fed lowered interest rates. These assets tend to thrive in low-interest-rate environments due to their higher risk profiles. However, Bitcoin has experienced increased volatility over the past week, partly due to President Donald Trump's tariff threats against major economies and an AI-related event that rattled crypto markets.

The overall crypto market cap has decreased by nearly 1% over the past day, currently standing at $3.35 trillion. Despite the recent volatility, Bitcoin remains the largest digital asset by market capitalization, trading at $98,320, up 1% over the last 24 hours. XRP, the third-largest virtual coin, has jumped by 7% over the last day, priced at $2.47, but is still down 19% on the week.