Friday, June 14, 2024

Breaking: Bitcoin Dips After US Job Data Fuels Fed’s Rate-Cut Concerns

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The most anticipated U.S. employment data this week showed that 272,000 jobs have been added in May, more than the market expectations. Meanwhile, the market was eagerly waiting for the jobs data for potential cues on the current health of the labor market. Notably, these sets of data plays are closely watched by the investors to understand the current economic health and decide on the policy rate prospects.

A Look Into The U.S. Jobs Data

According to Bureau Of Labor Statistics data, the U.S. added 272,000 jobs in May, after adding 175,000 jobs in the prior month. Notably, the unemployment rate soared to 4% from the prior month and was up from the market expectations of 3.9%.

On the other hand, U.S. hourly wages increased by 0.4% in May, after soaring 0.2% in the prior month. Notably, the investors were eagerly waiting for these job data for cues on potential interest rate cut decisions by the Federal Reserve.

Meanwhile, market experts have said that unexpectedly robust non-farm job data could have dampened the hopes of the Fed taking a dovish stance with their rate cut plans. Now, with the non-farm job data noting a strong increase might dampen the market sentiment. However, the higher unemployment data paints a contrasting picture to it.

Usually, the higher unemployment rate along with a lower non-farm payroll data tends to boost the market sentiment.

Also Read: Bank of Canada Slashes Interest Rate: Implications For Bitcoin (BTC) Price

Will Bitcoin Reach A New High?

The U.S. Job data paints a mixed picture with both the unemployment rate and non-farm employment increasing in May. Now, looking at the recent performance of the crypto market, it appears that the latest job data has weighed on the traders’ sentiment.

With the latest ECB’s decision to cut interest rates, the anticipation has soared over a similar step by the U.S. Federal Reserve. But, with the latest U.S. job report, the sentiment appears to have changed.

Now, the market will keep a close watch on the next week’s key inflation data including the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI). In addition, one of the most crucial events next week, the FOMC interest-rate decision, will play an important role in shaping the market sentiment.

Following the job data, the U.S. 10-year Bond Yield rose 3.32% to 4.421, while the U.S. Dollar Index jumped 0.56% to $104.630. However, the latest report by the Labor Department has caused a slump in Bitcoin price from a 24-hour high of about $72,000 to $70,875.25 in just a few minutes. The recent slump in the BTC price showed that how the latest data has weighed on the risk-bet appetite of the investors.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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