- The US economy added 150,000 jobs in October, coming in below market expectations of 180,000.
- As the job market cools, the NFP data is likely to drive upside volatility in Bitcoin and altcoins.
- BTC price is hovering around $34,500 at the time of writing.
The US Bureau of Labor Statistics (BLS) released the highly-anticipated Nonfarm Payrolls (NFP) report early on Friday. The economy added 150,000 jobs, 30,000 below the market participants’ expectations.
The US Federal Reserve takes NFP data as input for its decision to hike interest rates or keep them higher for longer. The cooling job market is conducive to a shift in the Fed’s stance and traders’ fears of an interest rate hike are likely to be alleviated.
Also read: Nonfarm Payrolls Quick Analysis: US Dollar set to extend slide as soft-landing scenario takes shape
Bitcoin price reaction to US NFP data for October
The number of Nonfarm Payrolls added in the US economy every month has a key influence on the Greenback and risk assets like Bitcoin and cryptocurrencies. The Federal Reserve scrutinizes jobs and inflation data to determine the need for an interest rate hike, therefore NFP is key to the central bank’s decision as well.
Higher interest rates make borrowing expensive, and this has a negative impact on assets like Bitcoin, where traders use leverage for gains. NFP data therefore tends to induce volatility in Bitcoin and cryptocurrency prices. Still, the impact may be short-lived. The NFP data for October further highlights that the US Federal Reserve may rule out another interest rate hike, as relatively tight financial conditions have dampened the labor market while inflation is slowing down.
Bitcoin price is eyeing a return to the $35,500 level seen on November 2. The asset is currently changing hands at $34,380.
As seen in the price chart below, the $34,466 level, the lower boundary of the Fair Value Gap, is likely to act as immediate resistance for the asset in its uptrend. BTC price could find support at the 10-day Exponential Moving Average (EMA) at $34,325.
BTC/USDT five-minute price chart on Binance
A decline below the 50-day EMA at $34,296 could invalidate the bullish thesis for Bitcoin price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Grayscale has withdrawn its 19b-4 application for an Ethereum futures ETF. SEC Chair Gensler says several crypto assets are securities as he waives off ETH classification question. Ethereum could sustain horizontal movement in the coming weeks.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
98% of creditors receive at least 118% of allowed claims within sixty days of effectiveness, others get billions in compensation. Plan would resolve disputes with government and private stakeholders without costly and protracted litigation.
Solana FireDancer validator launches documentation website, SOL price holds 23% weekly gains
Solana FireDancer validator has debuted, meant to replicate Solana’s functionality but with higher performance. Built from the ground up for performance, FireDancer advertises speed, security, and independence.
Bitcoin price may see further upside, Standard Chartered says, citing looser regulation and US spot ETFs
Bitcoin could benefit from US fiscal dominance and Trump winning, Standard Chartered says, citing loser regulation and spot ETF approvals. Hong Kong issuers told WuBlockchain that the government prohibits sale of virtual asset-related products to mainland Chinese.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.