Bitcoin Price Whipsaws Following Blockbuster US Jobs Report - Here's Where BTC is Headed Next
Bitcoin (BTC), the world’s first and largest cryptocurrency by market capitalization, has seen whipsaw price action since the release of a much stronger-than-expected US jobs report for September.
The blockbuster report showed the US economy adding 336,000 jobs last month, nearly double the median economist forecast for a gain of 171,000.
Those numbers underscored the ongoing strength of the US economy, which should bolster the case for 1) another interest rate hike from the US Federal Reserve (Fed) and 2) that the Fed should subsequently hold interest rates at higher levels for longer.
Unsurprisingly, US yields spiked higher across the curve, with the 10-year briefly nearing 4.9%, as traders bets on higher interest rates for longer, with this spike weighing on on crypto prices at the time.
Bitcoin dipped from the $27,700s prior to the data to as low as $27,200 in its immediate aftermath.
Higher yields on risk free assets like US government bonds reduce the incentive for investors to hold riskier and non-yielding assets, of which Bitcoin is (arguably) both.
However, as US yields have pulled back from earlier session highs (the 10-year was last under 4.8%), Bitcoin and the broader crypto market has enjoyed a strong recovery from intra-day lows.
BTC was last trading close to session highs and attempting to push through $28,000, up close to 3% from earlier session lows.
The exact reason for the market’s reversal is unclear, but a few factors could be playing on investors minds.
Firstly, the latest US jobs report wasn’t strong across the board – the unemployment rate unexpectedly edged up to 3.8% from 3.7% and the MoM pace of wage gains was 0.2%, a little slower than the expected 0.3%.
Investors could have taken the view that the US
Read more on cryptonews.com
