Bitcoin Price Chops After Strong US Jobs Report – Where Next for BTC?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
The Bitcoin (BTC) price has seen choppy trade since the release of a much stronger-than-expected US jobs report for September, swinging between the $61,000 and $62,000 levels as traders weigh up the economic outlook and geopolitical risks.
#US NFP September 254k vs 147k exp.
Pr 142k.
Unemployment rate 4.1% vs 4.2% exp/pr.
Participation rate 67.7% vs 62.7% exp/pr.
Wages 4.0% vs 3.8% exp/pr y/y.$USD
The US economy added 254,000 jobs in September, far greater than the median Wall Street expectation of 147,000.
The unemployment rate also fell to 4.1%, while the yearly pace of wage growth rose to 4.0% from 3.8% in August.
The strong report has seen macro traders pretty much erase all bets for another 50bps rate cut from the Fed in November.
Per the CME Fed Watch Tool, money markets were last pricing a near 95% of a 25bps rate cut next month.
CME FEDWATCH SHOWS 90.9% FOR 25BPS CUT AT FOMC NOV 7 MEETING, SHOWS 9.1% FOR 50BPS CUT
The data supports the narrative that a soft landing for the US economy remains highly likely.
I.e. that the Fed will succeed in their mission to bring inflation back under control whilst avoiding a recession.
While it does mean a somewhat slower pace of rate cuts, the Fed is still expected to deliver substantial rate cuts this year and in 2025.
The combination of continued robust US economic growth coupled with an easing monetary policy environment should be a great combination for risk assets and the Bitcoin price.
The Bitcoin price remains lower by about 6.6% since the start of the week. Could a new rebound be around
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