The US Bureau of Labor Statistics (BLS) released non-farm payroll data for September showing employment had increased by 263,000 jobs.
The US 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.
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 slow job growth 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%.
In the run-up to the BLS release, Bitcoin was trending upwards from a daily bottom of $19,830 — 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 — due to take place on Nov. 2.
Did Edge on the Crypto Market 👇
Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.
On chain analysis
Join now for $19/month Explore all benefits