Highlights
- The number of jobs added in the US during September significantly surpassed economic forecasts, showcasing the strength of the labor market.
- Following the encouraging economic report from the US, Bitcoin’s price found stability, suggesting that market uncertainty has decreased.
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Bitcoin’s price found stability around $61,500 following the unexpected addition of 254,000 jobs in the US during September, reducing the unemployment rate to 4.1%, as per data released by the Bureau of Labor Statistics.
The actual figures were significantly above economic forecasts, which anticipated 140,000 new jobs and an unemployment rate of 4.2%, signaling persistent strength in the labor market.
Bitcoin, which had recently seen a drop from highs above $66,000 due to geopolitical tensions in the Middle East, managed to stabilize around $61,500 following this jobs report. Analysts indicate that a thriving US economy could mitigate uncertainties as the presidential election approaches, possibly bolstering Bitcoin in the upcoming days.
After the encouraging economic report, the Nasdaq 100 increased by 0.8%, the US 10-year yield rose to 3.9%, and the dollar index saw a gain of 0.5%, while gold decreased by 0.5% to $2,665 per ounce.
The strong job growth in September was primarily supported by improvements in both the healthcare and leisure sectors, contributing to a solid performance in the service industry. The healthcare sector generated 71,700 jobs, while leisure and hospitality created an additional 78,000 jobs.
Construction added 25,000 jobs, showcasing strength in goods-producing industries, despite witnessing a reduction of 7,000 jobs in manufacturing. Additionally, average hourly earnings increased by 0.4%, surpassing expectations, and were up 4% year-over-year.
This positive economic update has elevated the likelihood of a 25 basis point rate cut at the Federal Reserve’s meeting in November to 94.5%, according to CME’s FedWatch Tool, while diminishing the prospects for a more significant 50 basis point cut. The strength of the labor market indicates the economy may be steering towards a soft landing, thus lowering recession fears.
