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Bitcoin is back above $17,000—rising with U.S. stocks as traders responded to a Labor Department report showing a rise in jobless claims, a possible sign that federal interest rate hikes could slow down.
The price of the biggest digital asset by market cap was trading for $17,183, a 2.1% 24-hour jump, at the time of writing.
Ethereum, the second-biggest cryptocurrency, was doing even better: up 3.7% in the past day, trading hands for $1,278.
The vast majority of the biggest digital assets were up in the past day, closely following U.S. equities: Wall Street traders were pleased with data showing Americans filing claims for jobless benefits increased last week and unemployment rolls hit a 10-month high at the end of the month.
Economists suggest that low unemployment can mean people spending more, leading prices to increase. With unemployment rising, prices are less likely to go up—in short, inflation will be coming down.
The S&P 500 was up 0.75% to finish at 3,963.51—ending its biggest losing streak since October—while the Dow Jones Industrial Average gained 183.56 points, or 0.55%, to finish at 33,781.48. The Nasdaq Composite jumped 1.13% to end at 11,082.00.
Digital assets this year have followed what the U.S. stock market does: when the Fed has raised interest rates to get inflation under control, investors have gotten rid of risk assets like equities and Bitcoin.
Today’s news was a small sign that policymakers may be getting inflation under control.
The wider crypto market is still down massively though: this time last year, Bitcoin was trading for over $50,000 per coin; Ethereum was priced at $4,431.