[U.S. employment data triggered a 2% drop in the price of Bitcoin, and expectations for a federal interest rate hike increased]
According to Cointelegraph Markets Pro, the mainstream cryptocurrency fell 2.1% in the short term, but later rebounded to put 27,700 back into focus.
The fluctuation came as U.S. nonfarm payrolls surged in September to 336,000, well above expectations of 170,000. While this reflects the labor market's continued adaptation to federal strategies to combat inflation, such as raising interest rates, September's data is still viewed as negative for risk assets such as cryptocurrencies.
CrypNuevo believes this data increases the chances of another rate hike by the FOMC in November. He commented at There are new risks to interest rates. The chance of raising interest rates today is 31.3%. CPI data will be released next Thursday, hoping to give us a clearer direction."
The CPI is the federally important inflation indicator. The Kobeissi Letter noted that both the market and the federation are under pressure. The federal government was originally expected to pause interest rate hikes until June 2024, but now thinks it will be extended to July. After the data was released, market futures fell more than 400 points, which was not what the federal government expected. As for Bitcoin, Skew said most traders chose to walk away after the NFP data.
Some analysts believe that there is a slight increase in the chance of raising interest rates on November 1, but it is still small. To determine the likelihood of a rate hike, one needs to pay close attention to the federal stance.
Daan Crypto Trades pointed out that compared with before October 6, Bitcoin’s open interest has declined and returned to a more average and healthy level.