The price of Bitcoin (BTC) saw a sharp decline last week, falling to a low of $60,000 on the basis of… Data from CoinMarketCap. However, the Bitcoin market has made some recovery in the last day in line with positive jobs data news from the US. In light of this development, financial industry analysts at Al Qubaisi hinted that the US Federal Reserve will implement a 25% interest rate cut in November.
US jobs rise higher than expected as inflation falls 1%
On Friday, the US Bureau of Labor Statistics released Released The latest North American country employment situation summary. This is a monthly statement that measures aspects of the U.S. labor force including unemployment by demographics, nonfarm employment, hours worked, and earnings in various industries.
Submitting a comment on this report, Kobeissi Highlights Payrolls in the US economy rose by 254,000 jobs in September, marking an unexpected increase of 107,000 jobs last month compared to popular expectations.
In the same “tough” vein, the unemployment rate collapsed to 4.1%, falling short of common expectations of stability at 4.2% recorded in August. In fact, analysts at Kobeissi highlight that the exact unemployment rate was 4.051% which is 0.002% lower than their rounding of 4.0%.
Based on this report, Kobeissi says it is 93% likely that the Fed will adopt a 25 basis point rate cut at the next Federal Open Market Committee (FOMC) meeting on November 7, which is also lower than previous market expectations of a 50% cut. .
Implications for the price of Bitcoin
Despite the change in the expected interest rate cut, Kobeissi describes this situation as remaining bullish for financial markets including the cryptocurrency space even if the expected interest rate cut has already been “priced in”.
Analysts explain that in general, investors continue to maintain a high appetite for risk, and therefore all news is received as good news. Additionally, many financial market enthusiasts are hoping for a “soft landing” as they expect inflation to continue to decline (closer to the 2% target) while the economy remains stable.
Following the release of the Employment Situation report, Bitcoin already showed a positive reaction as it rose 2.53% to trade above $62,000 on Friday. Therefore, the Fed’s confirmation of the expected interest rate cut in November will contribute to the highly anticipated bullish performance of Bitcoin in the fourth quarter of 2024.
Despite the bearish start to the quarter, the leading cryptocurrency is expected to post huge market gains based on historical reports. Amid high levels of optimism, many analysts expect Bitcoin to reach a six-figure price value soon. At press time, Bitcoin continues to trade at $62,874, after a 7.65% gain in the past month.
Featured image from MarketWatch, chart from Tradingview
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