With US job gains surpassing expectations, Bitcoin steadies at $61,500 ahead of the presidential election.
Key Takeaways
- US job additions in September far exceeded economist expectations, highlighting labor market resilience.
- Bitcoin’s price stabilized following the positive US economic report, indicating reduced market uncertainty.
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Bitcoin’s price stabilized at approximately $61,500 as the US added a surprising 254,000 jobs in September, bringing the unemployment rate down to 4.1%, according to data released by the Bureau of Labor Statistics today.
The figures exceeded economists’ forecasts of 140,000 new jobs and an unemployment rate of 4.2%, signaling continued resilience in the labor market.
Bitcoin, which had recently dropped from highs above $66,000 due to geopolitical tensions in the Middle East, found stability at around $61,500 following the jobs report. Analysts suggest that a robust US economy could ease uncertainty as the presidential election approaches, potentially supporting Bitcoin in the coming days.
Following a strong economic report, the Nasdaq 100 rose 0.8%, the US 10-year yield climbed to 3.9%, and the dollar index gained 0.5%, while gold dipped 0.5% to $2,665 per ounce.
September’s robust job growth was driven primarily by gains in the healthcare and leisure sectors, contributing to a strong service industry showing. Healthcare added 71,700 jobs, while leisure and hospitality saw an increase of 78,000 jobs.
Construction also added 25,000 jobs, indicating strength in goods-producing industries despite a decline of 7,000 jobs in manufacturing. Average hourly earnings also rose by 0.4%, ahead of expectations, and were up 4% year-over-year.
The positive economic news increased the probability of a 25 basis point rate cut at the Federal Reserve’s upcoming November meeting to 94.5%, according to CME’s FedWatch Tool, while eliminating the chances for a larger 50 basis point cut. The labor market’s strength suggests the economy may be on track for a soft landing, reducing fears of a recession.
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