Bitcoin (BTC) price fluctuates after the US employment data for September exceeded expectations. Bitcoin price hovers around $ 62,000 as investors evaluate the economic outlook and geopolitical risks.
Employment growth in the US exceeded Wall Street’s expectation of 147,000 in September with 254,000.
The unemployment rate fell to 4.1 per cent, while hourly earnings rose 4.0 per cent year-on-year.
The data, which exceeded expectations, reduced investors’ expectations. The Fed would cut interest rates by 50 basis points in November.
According to the CME Fed Watch Tool, about 95% of money markets have priced in a 25 basis point rate cut next month.
Data support the possibility of a soft landing for the US economy.
For example, the Fed is thought to be able to bring inflation back under control while avoiding recession.
The Fed is expected to cut interest rates this year and in 2025, albeit slowly.
Continued growth in the US economy and monetary policy easing could create a favourable environment for risk assets and the Bitcoin price.
Bitcoin price has lost about 6.6% since the beginning of the week. So could a new recovery be coming?
What’s Next for Bitcoin Price?
Geopolitical tensions continue to pose a risk to Bitcoin and financial markets.
After Iran’s attack on Israel, all eyes are now turned to the region.
Further escalation of tensions in the region and a possible war could seriously affect the flow of oil from the Middle East.
This is a major risk to the global economy. Therefore currently keeping risk appetite in check, especially in the crypto market.
If not for recent geopolitical events, there is a possibility that the US economic data released this week could have triggered a strong rise in the Bitcoin price. Perhaps as high as $70,000.
In addition, the positive US data strengthens the likelihood that Bitcoin will rebound later this month. As October is normally one of the best months for Bitcoin.
However, due to geopolitical tensions, big rises may not be seen in October this year.
According to Polymarket data, Bitcoin has a 25% chance of seeing $ 70,000 this month
And a 41% chance of seeing $ 55,000.
The newly released employment report from the US Bureau of Labour Statistics showed that 250,000 new jobs were unexpectedly added to the economy in September.
This reduced the unemployment rate from 4.2% to 4.1%. But even this positive development was not enough to revive the Bitcoin (BTC) market.
According to the report, American businesses added many more jobs compared to 159,000 in August and 144,000 in July.
This data is considered an indication that the US economy is beginning to recover from the devastating effects of Hurricane Helene.
However, although the Bitcoin price rose from $ 61,292 to $ 62,330 after the report was published, it could not maintain this momentum and soon fell to $ 61,940.
The markets were different in the US stock markets; the S&P 500 index rose by 0.17% and the NASDAQ 100 index by 0.47% at the market opening. These increases came with the impact of employment data.
Cryptocurrency markets are struggling to emerge from the ongoing recession due to global macroeconomic uncertainties. However, CryptoQuant analysts state that the Coinbase Premium rate is considered a short-term positive sign and that this situation carries bullish potential for Bitcoin.