Bitcoin price dives 2% on US jobs data as Fed rate hike bets heat up
Bitcoin prices fell by 2% on October 6, 2023, following the release of stronger-than-expected US jobs data. The data raised concerns that the Federal Reserve (Fed) will continue to raise interest rates aggressively in order to combat inflation.
The US economy added 263,000 jobs in September, beating expectations of 250,000 jobs. The unemployment rate remained unchanged at 3.5%.
The strong jobs data is a sign that the US economy is still growing, but it also means that the Fed is likely to continue raising interest rates. Higher interest rates make riskier assets like Bitcoin less attractive to investors.
Bitcoin and Fed rate hikes
Bitcoin and other cryptocurrencies have been negatively impacted by Fed rate hikes this year. Bitcoin has fallen by more than 60% from its all-time high in November 2021.
The Fed has raised interest rates three times this year, and it is expected to raise rates again at its next meeting in November.
Analysis of the US jobs data
The US jobs data for September was stronger than expected, but it is important to note that the data is backward-looking. It is possible that the US economy is slowing down, and the jobs data for October and November could be weaker.
However, the strong jobs data for crypto market cap suggests that the Fed is likely to continue raising interest rates. This could put further downward pressure on Bitcoin prices.
Technical analysis of Bitcoin
Bitcoin is currently trading in a range between $25,000 and $28,000. The $28,000 level is a key resistance level, and Bitcoin has been unable to break through this level on several occasions.
If Bitcoin is unable to break through the $28,000 resistance level, it could fall back to the $25,000 support level. If Bitcoin falls below the $25,000 support level, it could lead to a further sell-off in Bitcoin prices.
Bitcoin prices fell by 2% on October 6, 2023, following the release of stronger-than-expected US jobs data. The data raised concerns that the Federal Reserve (Fed) will continue to raise interest rates aggressively in order to combat inflation.
Higher interest rates make riskier assets like Bitcoin less attractive to investors. Bitcoin has been negatively impacted by Fed rate hikes this year, and the recent jobs data suggests that the Fed is likely to continue raising rates.
This could put further downward pressure on Bitcoin prices in the short term. However, it is important to note that the cryptocurrency market is volatile, and it is difficult to predict future price movements.
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Other factors to consider
In addition to the factors listed above, there are a number of other factors that could affect the price of Bitcoin in the short term. These include:
- The upcoming US midterm elections
- The ongoing war in Ukraine
- The global economic outlook
- New developments in the cryptocurrency industry
Bitcoin is a volatile asset, and its price is influenced by a number of factors. The US jobs data and Fed rate hikes are two of the most important factors to watch in the short term.
Bitcoin investors should carefully consider all of the factors that could affect the price of Bitcoin before making any investment decisions.
