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What to Expect in Bitcoin Price After Strong Employment Data from the US? Will Interest Rate Cuts Be Postponed?
Crypto currency markets took a hit today after fears that strong US employment data could delay the Fed's interest rate cuts, which has been suppressing digital asset prices.
Since the hawkish meeting of the FED on December 18th, Bitcoin has lost over 10% of its value.
The employment report released on Friday revealed that the US economy added 256,000 jobs in December, significantly surpassing economists' expectations of 153,000. The unemployment rate also dropped from 4.2% in November to 4.1%, underscoring the resilience of the labor market.
Sit Fixed Income Advisors portfolio manager Bryce Doty said, "This report will sustain high returns and further postpone the next FED interest rate cut," and added, "We may not see another interest rate cut until the next quarter."
Yuya Hasegawa, a crypto analyst at Bitbank, stated earlier this week that higher-than-expected employment and Purchasing Managers' Index (PMI) data have already weighed on Bitcoin. Hasegawa suggested that the performance of Bitcoin towards the end of the week will depend on how much the employment report exceeds expectations. Hasegawa said, 'If the data on Friday significantly exceeds market expectations, Bitcoin may be at risk of falling below $92,000 again'.