The price of Bitcoin (BTC) experienced a keen decline last week, falling to the level of $60,000 based on data from CoinMarketCap. However, there was some recovery in the BTC market in the last day, in line with positive employment news from the US. Analyzing this situation, financial industry analysts in Kobeissi gave a hint to the US Federal Reserve to cut interest rates by 25% in November.
US jobs grow higher than expected as inflation falls by 1%
On Friday, the U.S. Bureau of Labor Statistics released the latest summary of the labor market situation in the North American country. It is a monthly summary that measures aspects of the American workforce, including unemployment by demographics and nonfarm employment, hours and earnings in various industries.
Kobeissi provided a comment on this report overview of the most vital events that the number of jobs in the US economy increased by 254,000 in September, an unexpected augment of 107,000 in the last month compared to popular expectations.
On the same hawkish note, the unemployment rate fell sharply to 4.1%, falling below widespread predictions of the 4.2% stability recorded in August. Analysts from Kobeissi emphasize that the exact unemployment rate was 4.051%, which is 0.002% less than the rounded rate to 4.0%.
Based on this report, Kobeissi concludes that the Fed is 93% likely to adopt a 25 basis point rate cut at the next Federal Open Market Committee (FOMC) meeting on November 7, which is also below prior market expectations for a 50% cut. .
Implications for Bitcoin’s price
Despite the change in the expected basis point cut, Kobeissi describes the situation as bullish for financial markets, including the crypto space, even if the expected interest rate cut has already been “priced in.”
Analysts explain that in general, investors still have a high appetite for risk, which is why all news is perceived as good. Additionally, many financial market enthusiasts are hoping for a supple landing as they predict that inflation may continue to fall (closer to the 2% target) while the economy remains stable.
Following the release of the Employment Situation Report, Bitcoin has already shown a positive reaction, rising 2.53% to reach above $62,000 on Friday. Therefore, confirmation of the expected Fed interest rate cut in November will contribute to Bitcoin’s long-awaited growth performance in Q4 2024.
Despite a bearish start to the quarter, the leading cryptocurrency is expected to post massive market gains based on historical reports. Amid high levels of optimism, many analysts expect Bitcoin’s price to reach six figures soon. At press time, Bitcoin is still trading at $62,874, after rising 7.65% in the last month.
Featured image from MarketWatch, chart from Tradingview
