Here’s why Toncoin, Jasmy, Arweave and Bonk prices are rising

Cryptocurrency prices spiked on Friday as market participants embraced a risk-on sentiment after the latest US jobs numbers. Bitcoin soared above $62,000, a remarkable comeback for a coin that tumbled to $57,000 earlier this week. 

Bitcoin and altcoins rebounded

Arweave (AR) token surged by over 17% in the past 24 hours and reached a high of $37.60. Toncoin (TON) rose to $5.52 while JasmyCoin (JASMY) soared by over 14% and 12%, respectively. The other top-performing cryptocurrencies were the likes of Kamino (KMNO), Harambe on Solana (HARAMBE), Tellor Tributes (TRB), and ZetaChain (ZETA).

There was no major crypto-related news on Friday, meaning that the tokens are reacting to the broader market news. As I wrote earlier, data from the Bureau of Labor Statistics (BLS) revealed that the economy added over 175k jobs in April, lower than the expected 275k. The unemployment rate rose to 3.9%.

These numbers had an immediate impact on the broader financial market, pointing to a risk-on sentiment. American equities roared back, with the Dow Jones adding over 380 points and the Nasdaq 100 and S&P 500 rising by 1.60% and 0.90%, respectively. 

The US dollar index (DXY), on the other hand, retreated by 20 basis points to $104.90. The same happened in the bond market where the 10-year and 30-year bond yields tumbled to 4.52% and 4.72%, respectively.

Federal Reserve rate cuts ahead

Economists believe that these numbers will ultimately have an impact on the Federal Reserve, which left interest rates unchanged on Wednesday. The swap market points to two rate cuts this year as the bank attempts to recharge the economy. 

That’s because there is a sense in which the economy is not doing as expected. A report published last week showed that the economy expanded by just 1.8% in the first quarter after growing by 3.4% in the previous quarter.

Other data revealed that consumer confidence and manufacturing PMI dropped in April, signaling that the economy is slowing.

Cryptocurrencies like Bitcoin, Toncoin, JasmyCoin, and Bonk are desperately in need for a catalyst now that the most important ones have happened. The Securities and Exchange Commission (SEC) has already approved a spot Bitcoin ETF while Bitcoin halving happens. 

A dovish tilt by the Fed would be a welcome move since most analysts were expecting the bank to leave rates unchanged or even hike rates because of the stubbornly high inflation. The headline Consumer Price Index (CPI) rose to 3.5% while the Personal Consumption Expenditure (PCE) rose to 2.5%. 

The only cryptocurrency with a catalyst is Toncoin, which is continuing to gain traction among developers. Data shows that the total value locked (TVL) in the ecosystem jumped to $443 million, helped by Tonstakers, STON.fi, DeDust, and bemo. 

It is worth noting that this rebound could also be a dead cat bounce, which is a short-term rebound that happens after an asset crashes hard.

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