Altcoin
US Job Data Signals Bitcoin & Altcoins Rally Ahead
The latest US Job data showed that the non-farm payroll climbed by 12,000 in October, as compared to the market forecast of 110,000. On the other hand, the unemployment rate remained unchanged last month, sparking discussions in the market. Notably, this US non-farm payroll data is a crucial metric considered by the Federal Reserve to decide their monetary stimulus plans.
US Job Report Sparks Market Optimism
The latest US Job data by the Labor Department showed that the non-farm payroll surged by 12,000 in October, down from the revised figure of 223,000 noted in the prior month. Notably, the market was anticipating the figure to stay at 110,000.
On the other hand, the US unemployment rate remained steady at 4.1%, unchanged from the figure noted in September. It also comes in line with the Wall Street expectations. The Average Hourly earnings for October came in at 0.4%, while on a year-over-year (YoY) basis, it surged 4%.
Meanwhile, the latest job data appears to have given some relief to the investors, who were expecting the Fed to pause cutting the interest rates this month. Notably, the cooling non-farm payroll data and rising unemployment rate tend to boost the market sentiment. In other words, such conditions usually hint towards a hawkish move by the central bank.
Having said that, the latest job data indicates a potential US Fed rate cut in November, followed by another rate cut next month.
Will Bitcoin And Altcoin Prices Rally?
The latest US Job data raises hopes over a potential rally in the broader financial market, with optimism soaring over a dovish by the central bank at the upcoming FOMC next week. Besides, it also appears to have boosted the crypto market sentiment, with investors now anticipating a rebound in Bitcoin and other top altcoins.
Following the data, the US 10-year Bond Yield fell more than 1% to 4.242, while the US Dollar Index retreated 0.25% to $103.62. This has also sparked speculation as a weakening dollar is usually good for digital assets for Bitcoin and other crypto.
Meanwhile, many in the crypto market were expecting the Fed to pause its rate cut plans in November while anticipating robust job data. However, following the release, the market is now heavily betting towards a 25 bps Fed rate cut at the upcoming FOMC on November 7. CME FedWatchTool showed. Besides, the market is also expecting another same percentage point cut at the central bank’s December meeting.
Besides, the upcoming US Election is also expected to boost Bitcoin and altcoin prices. Considering all these aspects, along with the historical trends noted in the final quarter of the year, many are now expecting the crypto market to move towards the north in the coming days.
As of writing, BTC price traded in the red, but wiped off some of its losses and crossed the brief $70,270 mark. Besides, on a 4-hour time frame, the Bitcoin Futures Open Interest also rose nearly 2% to 592.73K BTC, CoinGlass data showed.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: 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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