Bitcoin Price Bursts Back Above $60,000 as US NFP Data Misses Expectations – Here’s Where BTC Is Headed Next
The Bitcoin (BTC) price has powered back into the mid-$61,000s in wake of a softer-than-expected US labor market report which has boosted hopes that the Fed cuts interest rates more than once before the end of 2024.
❖ US Labor Apr Nonfarm Payrolls +175K; Consensus +240K
❖ US Apr Unemployment Rate 3.9%; Consensus 3.8%
❖ US Apr Average Hourly Earnings +0.20%, or +$0.07 to $34.75; Over Year +3.92%
❖ US Apr Private Sector Payrolls +167K and Government Payrolls +8K
❖ US Apr Average…
— *Walter Bloomberg (@DeItaone) May 3, 2024
The US economy added 175,000 jobs in April, below the Wall Street consensus for a 240,000 job gain. Meanwhile, the unemployment rate jumped to 3.9%, above the expected 3.8%.
As per the CME, the odds that the Fed will have cut interest rates more than once before the end of 2024 rose to around 62% from around 50% one day ago.
And traders upping their rate cut bets for 2024 has put US yields and the US dollar under pressure.
The DXY dropped back under 105 for the first time since April 10th. US 10-year yields, meanwhile, fell back to 4.5% from above 4.7% last week. The 2-year yield was last at 4.8%, down from above 5% just three days ago.
Easing financial conditions helped the S&P 500 hit its highest in over two weeks above 5,100. And the improving macro backdrop has unsurprisingly injected bullish momentum back into the crypto market.
It remains to be seen whether the Bitcoin price can break out of its recent bearish trend channel. To confirm a breakout of this downtrend, a push above $64,000 would be needed.
Softer-than-expected US jobs data caused a major bullish reaction in traditional financial markets and Bitcoin. Investors seem to have interpreted the data as increasingly the likelihood that the rise in
