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Bitcoin sinks as US payroll data shows 263K new jobs added in September Bitcoin sinks as US payroll data shows 263K new jobs added in September

Bitcoin sinks as US payroll data shows 263K new jobs added in September

Bitcoin sell off occurs in reaction to news the red hot U.S. labour has continued on into September.

Bitcoin sinks as US payroll data shows 263K new jobs added in September

Cover art/illustration via CryptoSlate

The U.S. Bureau of Labor Statistics (BLS) released non-farm payroll data for September showing employment had increased by 263,000 jobs.

The U.S. unemployment rate currently stands at 3.5%, below the expected rate of 3.7%.

On the release of the data, Bitcoin reacted with a 1% swing to the downside, on the 15-minute candle, to bottom at $19,800. Further selling has since continued.

Bitcoin 15 minute chart
Source: BTCUSDT on TradingView.com

Bloomberg expects Fed to pause rate hikes at 4-4.5%

Chief Economist and Head of Global Economic Research Bruce Kasman told Bloomberg News on Oct. 3 that he feared a buoyant jobs market would keep pressure on the Fed to press ahead with its program of rate hikes.

“I think to get the Fed to pause [rate hikes], you need to job growth to slow to at least 100,000 a month over the next two or three months.”

Kasman said it is reasonable to pause rates at 4-4.5%. But, he feared the Fed may continue hiking rates beyond his expectations until a sufficient cooling of the jobs market is reached.

Off the back of a third 75 basis point hike, the current Federal Reserve interest rate currently stands at 3% to 3.25%.

Bitcoin down

In the run-up to the BLS release, Bitcoin was trending upwards from a daily bottom of $19,830 โ€” peaking at $20,500 minutes before the payroll announcement.

At 12:30 (UTC), BTC fell sharply to give up all of today’s gains. The leading cryptocurrency has since gone on to sink further, falling to $19,660 at the time of press.

Experts are now predicting an 81% chance of another 75 basis point hike following the next FOMC meeting โ€” due to take place on Nov. 2.

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