Bitcoin, Ethereum, and Dogecoin Make a Massive Recovery on Friday

After a week of lower trends, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) jumped in trading on Friday morning.

As of 3 p.m. ET, Bitcoin was up 4.1% versus yesterday's stock market close, Ethereum had risen 2.6%, and Dogecoin was up 5.6%. And they all moved based on the same piece of information.

Unemployment data and crypto
Crypto values jumped the moment the U.S. Labor Department released April 2024 jobs data. The U.S. added 175,000 jobs last month and the unemployment rate rose slightly to 3.9%.

Economists were expecting 235,000 new jobs and an unemployment rate of 3.8%.

There can be revisions to initial data, but the market will often react solely to the headline report. And that's exactly what happened with the crypto market's reaction only seconds after the report was released.

Does unemployment really impact crypto?
The question is really about what this news has to do with cryptocurrencies. Many market participants think a worsening economy means the Federal Reserve will lower rates more quickly. Current expectations are for a September rate cut, but there may be no rate cuts this year if inflation remains high.

It's a balance to keep rates higher if the economy weakens because lower rates can be a catalyst for more economic activity.