Cryptos Jump After Jobs Data Shock

A weaker-than-expected jobs data report from the U.S. drastically reduced rate hike expectations from the Federal Reserve in the October FOMC, boosting sentiment towards cryptocurrencies. Overall cryptocurrency market capitalization has surged 2.1 percent overnight to $2.93 trillion. Bitcoin touched a 24-hour high of $87,146.

Data released by the U.S. Bureau of Labor Statistics on Friday morning showed an addition of 29 thousand to non-farm payrolls in September. This compares with a downwardly revised 133 thousand additions in the previous month and expectations of additions of 90 thousand. Simultaneously, the unemployment rate which was expected to remain steady at 4.1 percent increased to 4.2 percent.

Amidst the shocking update from the U.S. job market, the dollar weakened, bond yields eased and expectations of a rate hike by the Federal Reserve dropped.

The six-currency Dollar Index which measures the U.S. Dollar's strength against a basket of 6 currencies is currently trading at 101.70, implying an overnight decline of 0.39 percent from 102.10 at the previous close.

Bond yields eased across regions and tenors as markets became doubtful of another immediate rate hike by the Federal Reserve in October.