Bitcoin Bounces as US Jobs Market Slows – Where Next for the BTC Price?
Economic data released earlier on Friday revealed a larger-than-expected slowdown in the US jobs market in October, triggering downside in US bond yields and a pump in the US stock market and price of Bitcoin (BTC), which was last around $34,600.
The latest jobs report revealed that the US economy added 150,000 jobs last month, less than the expected gain of 180,000 and marking the slowest pace of job gains since early 2021.
Macro investors responded to the data by pulling back on bets that the US Federal Reserve will implement one further rate hike, as it warned was a possibility earlier in the week.
As per the CME’s Fed Watch Tool, the US money market implied probability that the Fed hikes interest rates by another 25 bps by January 2024 fell to just 10% on Friday from around 26% on Thursday.
The implied probability that the Fed will have cut interest rates by at least 100 bps by the end of 2024 jumped to around 65% from just over 40% one day ago.
The latest US jobs numbers also revealed a surprise rise in the US unemployment rate to 3.9% from 3.8% and an unexpected slow down in the MoM pace of wage growth to 0.2% from 0.3%.
The Fed started aggressively hiking interest rates in early 2022 to combat an unexpectedly powerful surge in US inflation that began in mid-2021.
Whilst good progress has been made in bringing US inflation back towards the Fed’s 2.0% goal, the continued strong performance of the US economy and resilience of its labor market in 2023 has been complicating this task.
Following two stronger-than-expected jobs reports over the past two months, Friday’s jobs data confirms that a gradual weakening trend in the US labor market remains in place, reducing pressure on the Fed to implement further rate hikes, and to
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