Bitcoin (BTC) was mostly flat after the US added 150,000 nonfarm jobs in October, less than FactSet economists’ forecasts of 180,000. Unemployment rose 3.9%, beating estimates of 3.8%, while average hourly earnings came in softer than predicted, increasing by 0.2% instead of the expect 0.3%.
The lower wage growth and higher unemployment, as well as revised lower jobs for August and September could encourage the US Federal Reserve (Fed) to cut rates in the coming months. In addition to lowering inflation, the Fed wants unemployment and wage growth to rise moderately before it will consider rate cuts.
Higher Unemployment and Lower Jobs Show Cooling
Bankruptcies rose 13% in the year ending Sep. 3, contributing to the increasing unemployment in the US. Meanwhile the autoworkers’ strike potentially shaved off around 33,000 jobs from the nonfarm payrolls number.
Market commentators argue the downturn in employment and wages are promising, but it is still too early for the Fed to cut rates. Bloomberg’s Mike McKee said the Fed would need to see the trends in lower unemployment and wage growth to alter their course.
In the aftermath of the news, yields on 10-year Treasuries fell to a little over 4.5%, and the S&P 500 rose 0.4%. Bitcoin rose marginally from $34,300 to $34,386, while Ethereum (ETH) rose to a hair under $1,800. Solana (SOL) rose from $39.37 to $39.62 before falling back to $39.59.
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Author: David Thomas
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