Markets
US jobs data reinforces rate cuts, boosting crypto: analyst Nansen
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The US ADP National Employment Report increased by 152,000 in May, below the expected number of 175,000 and the smallest increase since January. The ADP measures the monthly change in non-farm and private employment and is below expected signs that job growth and wage growth are slowing.
Aurelie Barthere, Principal Research Analyst at research firm Nansen, assesses that this result paints a picture of moderation in real growth and a cooling of the US job market when combined with other real activity data, such as retail sales, GDP of the first quarter and CAPEX.
“As long as growth slows but does not contract, it is likely to lower US rates and become a tailwind for crypto. So far, we cannot say that the growth slowdown is too severe”, added Barthere.
Furthermore, he mentions the services sector, which is resisting, as proven by the latest PMI business survey, and highlighted that Jerome Powell indicated that, if unemployment were to increase with persistent inflation, he would prefer rate cuts.
“Therefore, investors are pricing a ‘Fed put’ when growth data is weak, but not too weak. Friday’s payroll will likely become the next key data point in this narrative.”
A bright June
Crypto industry participants expect a “bright June” for the market as reported by Crypto Briefing. Driven by the approval of Ethereum (ETH) exchange-traded funds (ETF) in the US, this month could see a jump in the price of ETH.
Additionally, ETH price dynamics could trigger broad altcoin market growth, resulting in a “summer of meme coins” as this sector of the crypto market is showing the same signs as the summer of non-fungible tokens (NFT). ) witnessed in 2021. As a result, retail money temporarily withdrawn from other high-yield projects may flow into crypto.
There are also the European Parliament elections, scheduled to take place between June 6th and 9th, where the results could mean a more pro-crypto stance in the European Union, resulting in favorable regulations.
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