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Bitcoin’s price was volatile Friday following the release of data from the Labor Department—following its trend this week of dipping and diving as investors decide what to do with riskier assets.
At first the biggest cryptocurrency rallied after news showed U.S. employers added 315,000 jobs in August, pushing the size of the labor force to a record high. The report also showed, however, that job growth has slowed in the U.S., as employers added more than 526,000 jobs in July.
And just as quickly as it popped, BTC then dipped right back down again today. Bitcoin at the time of writing was priced at $20,110, according to CoinGecko—down 1.5% from the high it reached this morning Eastern Time of $20,428 after the Labor Department’s data dropped.
The digital asset’s jump at first was likely down to the seemingly good market news coming out of the U.S., experts told Decrypt. Trader and analyst Alex Krüger said the economic data was “100% the driver.”
Bitcoin at first rallied with U.S. stocks—and when U.S. stocks rally, Bitcoin tends to do the same. The asset has been closely related to equities this year as investors holding cryptocurrencies have been trading them like tech stocks, according to data from Arcane Research.
But later in the trading day, stocks—and crypto—took a hit. Why? Because investors are still keen to shift risky assets, experts confirmed to Decrypt. This is for a number of reasons—including uncertain times in regards to energy: today Russia shutdown the Nord Stream 1 pipeline, halting gas supplies to Europe and spooking markets.
“Risk assets have been volatile following the employment numbers,” head of trading at XBTO Group, Paul Eisma, said, adding that equity, rates, and crypto markets rallied initially before selling off as investors were “concerned that the employment numbers may not be weak enough to change the fed’s rate path, as well as anxiety with the Gazprom Nord Stream 1 pipeline shutdown.”
Bitcoin wasn’t the only cryptocurrency to rise and fall Friday. Ethereum was trading for $1,591, a 1.5% 24-hour jump. At one point it was up nearly 6%, though, touching $1,642.
Ethereum, the second largest cryptocurrency by market cap, is expected to upgrade this month in a long-awaited move to a proof-of-stake blockchain, which is hoped will make the network more energy efficient.