The price of Bitcoin (BTC) fell sharply last week, falling to $60,000 based on data from CoinMarketCap. However, the BTC market made some recovery in the last day in line with the good news of jobs data from the US. Going into this development, Kobeissi financial industry analysts told the US Federal Reserve to implement a 25% rate cut in November.
US Jobs Rise More Than Expected As Inflation Falls 1%
On Friday, the US Bureau of Labor Statistics released the latest summary of the employment situation in North America. This is a monthly statement that measures characteristics of the US labor force including unemployment by demographics, and non-farm employment, hours, and benefits for various industries.
Commenting on the report, Kobeissi highlights that jobs in the US economy increased by 254,000 in September, marking an unexpected increase of 107,000 last month above people’s expectations.
In a similarly “hawkish” fashion, the unemployment rate fell to 4.1%, falling short of consensus forecasts for stability at 4.2% recorded in August. In fact, Analysts at Kobeissi highlighted that the unemployment rate was 4.051% which means 0.002% shy of being reduced to 4.0%.
Based on the report, Kobeissi says the Fed is 93% likely to accept a 25 bps rate cut at the next Federal Open Market Committee (FOMC) meeting on November 7 which also falls short of market expectations for a 50% cut. .
Bitcoin Price Results
Despite the change in the expected bps cut, Kobeissi explains the situation to remain active in financial markets including the crypto space even if the expected rate cut is already “priced”.
Analysts explain that in general, investors continue to maintain a high risk appetite and therefore every news is received as good news. In addition, many financial market enthusiasts are hoping for a “slow down” as they predict that inflation may continue to decline (closer to the 2% target) while the economy stabilizes.
After the release of the employment status report, Bitcoin has already shown a positive reaction rising by 2.53% to trade above $62,000 on Friday. Therefore, confirmation of the expected rate cut by the Fed in November will have an impact on the expected performance of Bitcoin in Q4 2024.
Despite the bearish start to the quarter, the main cryptocurrency is expected to record major market gains based on historical reports. Amid high levels of optimism, many analysts expect Bitcoin to reach a six-figure value soon. At press time, Bitcoin continues to trade at $62,874, following a 7.65% gain over the past month.
Featured image from MarketWatch, chart from Tradingview
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