We are on the last trading day of the markets, and crucial data for the US economy has just been released. While Bitcoin price struggles to normalize below $56,000, only days remain until the Fed meeting. BTC finds buyers at $55,900. So, what do the newly released Unemployment Rate and Non-Farm Payroll data mean for the cryptocurrency markets?
US Data and Crypto
Yesterday’s ADP data indicated that alarm bells continue to ring for employment. Moreover, the largest layoffs in five months were reported. Today’s data, in light of yesterday’s figures, were expected to favor cryptocurrencies. The Fed needs to make a 50bp cut this month due to the intensifying weakness in employment.
The released data must compel the Fed to make a 50bp cut. If such a significant cut is made, we will have received the message that the Fed will act more boldly in its rate-cutting cycle. Last month, Non-Farm Payroll came in at 114,000, with expectations at 165,000. The unemployment rate was 4.3% last month, with a target of 4.2% this month.
Experts interpret employment below 150,000 and unemployment at 4.3% or above as factors that will pressure the Fed. So, how did the data come in?
- Unemployment Rate Announced: 4.2% Expected: 4.2% Previous: 4.3%
Non-Farm Payroll Announced: 142K Expected: 165K Previous: 114K
DXY has retreated to its daily low, and if it falls below 100.5, Bitcoin (BTC) may breathe easier.
