5 Things to Know in Crypto Today: BTC Consolidates Above $23K Ahead of US NFP

Key Points

  • Cryptocurrency prices are a little higher on Friday ahead of US jobs data, though mostly remain within recent ranges.
  • Stronger than expected jobs data could weigh on crypto if it boosts Fed tightening bets and vice versa.
  • Coinbase Global’s share price surged on Thursday amid news it is partnering with BlackRock to offer institutional trading services.

Market Update

Cryptocurrency prices have moved a little higher on Friday, but mostly remain well within this week’s ranges ahead of the release of US jobs data for July at 1230GMT. Bitcoin was last trading about 1.0% higher in the past 24 hours in the $23,200 area, according to CoinMarketCap, as the world’s largest cryptocurrency by market capitalization continues to find support at its 21-Day Moving Average near $22,700.

Ethereum, meanwhile, was last up about 2.2% in the last 24 hours, whilst the likes of BNB, XRP, ADA, SOL, DOT and DOGE were all between 2-6% higher over the same time period. Analysts said news on Thursday that global asset management giant BlackRock has partnered with Coinbase to offer new crypto trading services to its institutional clients has helped give the mood within crypto a modest lift.

How US NFP Data Could Impact Crypto

According to the median analyst forecast, Friday’s US jobs data is expected to show that the US economy added 250,000 jobs in July. Meanwhile, the unemployment rate is seen remaining unchanged at 3.6%, while Average Hourly Earnings growth is seen moderating to 4.9% from 5.1% YoY. In other words, the US labor market is expected to have moderated in strength in July, but still to have still remained robust by historical comparison.

Ongoing labor market strength is one of the key reasons why the US Federal Reserve thinks that the US economy can handle rapid rate hikes. So if the data later on Friday comes in stronger than expected, this could boost Fed tightening bets. This has the potential to weigh on risk assets like stocks and crypto, but if it also boosts optimism about the US economy not being in a recession yet, this could cushion any downside.

Coinbase Global’s Share Price Surges on Blackrock Partnership News

Coinbase Global’s share price surged over 10% higher on Thursday after news broke that global asset management giant Blackrock is set to offer its clients access to crypto trading services via Coinbase’s institutional platform, called Coinbase Prime. COIN shares had at one point been as much as 44% higher intra-day.

Reacting to the news, OANDA senior market analyst Edward Moya sid that “calls that crypto is dead have been overdone… In fact, crypto is alive and well.” Moya called the Coinbase/Blackrock partnership “much-needed positive news for crypto traders” that “should provide some optimism for the longer-term health of the cryptoverse”.

FLOW Surges With Meta Platforms to Utilize Flow Blockchain to Expand NFT Features

FLOW, the native token that powers the Flow blockchain, has surged over 56% since Wednesday’s close in the $1.80s to current levels in the $2.80s. The cryptocurrency has received a boost on the news that Meta Platforms will utilize the Flow blockchain in order to expand its non-fungible token (NFT) offerings.

Meta this week announced an international expansion of its digital collectibles features that it successfully piloted on Instagram back in May. Meta will now support the Dapper wallet, whose creator Dapper Labs also created the Flow blockchain, as well as supporting the Coinbase wallet.

Nearly 7% of Spaniards Already Invested in Crypto, Regulator Says

According to a study carried out by Spain’s securities market regulator (CNMV), nearly 7% of Spanish citizens have already invested in crypto. According to the survey, hopes for profit and belief in the blockchain/distributed ledger technology that underpins crypto-motivated investors.

The Spanish markets regulator said it was concerned that investors might not appreciate the risks involved with investing in crypto, citing the fact that 40% of the crypto investors surveyed think the asset class is already regulated and 29% think it has a similar risk profile to other investors.

Crypto is, for the most part, still unregulated in Europe and is seen as having a much higher risk profile compared to traditional asset classes like stocks and bonds. Earlier in the year, CNMV announced a crackdown on crypto ads. Meanwhile, the EU recently struck a deal to implement broad crypto regulations (the Markets in Crypto Assets Regulation or MiCA bill), though it isn’t expected to come into force until 2024.