🚀 U.S. Unemployment Data: Bitcoin's Took Everyone by Surprise!
posted 4 Oct 2024
The latest report from the Bureau of Statistics, published on October 4, shows that 254,000 new jobs were added in September.
Meanwhile, the unemployment rate for September was 4.1%. Contrary to expectations, it dropped slightly compared to the 4.2% rate in August.
The positive news on employment led to market volatility, including in the cryptocurrency sector. Bitcoin, which had been experiencing a slight downturn in recent days, reacted by climbing almost 1.5%, reaching approximately $61,500.
The reason lies in larger macroeconomic concerns, particularly the escalating tensions in the Middle East, which are preventing a bullish trend from taking hold.
Before the recent employment report, the betting markets saw a 30% likelihood of a 50 basis point rate cut at the upcoming Fed meeting. However, just hours after the report's release, that probability has fallen to less than 1%.
This result significantly exceeded economists’ forecasts, who had projected the figure to be around 140,000.
Meanwhile, the unemployment rate for September was 4.1%. Contrary to expectations, it dropped slightly compared to the 4.2% rate in August.
The positive news on employment led to market volatility, including in the cryptocurrency sector. Bitcoin, which had been experiencing a slight downturn in recent days, reacted by climbing almost 1.5%, reaching approximately $61,500.
In the past, the crypto market welcomed rising unemployment, as it suggested that the Federal Reserve might cut interest rates. Now, it seems that falling unemployment is viewed more positively, as it points to an exit from recession,says Dmytro Psevdonimenko, an analyst at GN Crypto.
Nevertheless, Bitcoin remains well below last week’s peak of over $66,000.
The reason lies in larger macroeconomic concerns, particularly the escalating tensions in the Middle East, which are preventing a bullish trend from taking hold.
The new economic figures have caused traders to adjust their expectations for the Federal Reserve's monetary policy.
Before the recent employment report, the betting markets saw a 30% likelihood of a 50 basis point rate cut at the upcoming Fed meeting. However, just hours after the report's release, that probability has fallen to less than 1%.
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