Bitcoin drops 1.4% on better-than-expected US payroll data Bitcoin drops 1.4% on better-than-expected US payroll data

Bitcoin drops 1.4% on better-than-expected US payroll data

The leading cryptocurrency dropped to $16,780 in response to a buoyant labor market stoking inflation risk.

Bitcoin drops 1.4% on better-than-expected US payroll data

Cover art/illustration via CryptoSlate

The U.S. Bureau of Labor Statistics (BLS) released nonfarm payroll data showing 263,000 jobs were added in November.

As an initial response, Bitcoin recorded a 1.4% swing to the downside, finding support at $16,780.

Jobs growth puts more pressure on the Fed

U.S. nonfarm payroll was forecast to rise by 200,000 for November. The prior month saw a better-than-expected 261,000 additional nonfarm jobs added.

On Nov. 2, the Fed enacted a fourth consecutive 75 basis point hike, in part, due to continued buoyancy in the U.S. labor market.

However, expectations of a slowdown in the labor market renewed hope that the pace of rate hikes may ease. Agron Nicaj, Economist at MUFG bank, echoed this view. However, he also pointed out that inflation is far from under control.

“The Fed might slow down the pace of rate hikes, but they are not at a point where they are going to completely stop.”

However, with November recording better-than-expected jobs figures again, hopes of an easing of rate hikes have faded.

Bitcoin drops

In the run-up to the release of BLS data, Bitcoin had been trending higher from a local bottom of $16,850. The uptrend topped out at $17,100 on the eve of the payroll announcement.

The ensuing 13:30 (UTC) candle saw bears drop the price of Bitcoin to $16,780 at the time of press.

Bitcoin 15 min chart
Source: BTCUSDT on TradingView.com
Posted In: , , Macro

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