The price of Bitcoin (BTC) took a sharp decline over the past week, dropping to a low of $60,000, based on data from CoinMarketCap. However, the BTC market has seen some recovery in the past day, in line with positive news on US employment figures. Financial sector analysts at Kobeissi have dug into this development and have tipped the US Federal Reserve to implement a 25% interest rate cut in November.

US jobs rise higher than expected as inflation eases 1%

The American Bureau of Labor Statistics announced this on Friday issued the latest overview of the employment situation for the North American country. This is a monthly statement that measures aspects of the U.S. labor force, including unemployment by demographics, and nonfarm employment, hours, and earnings in various industries.

Kobeissi comments on this report highlights that the number of jobs in the US economy rose by 254,000 in September, an unexpected increase of 107,000 in the past month compared to general expectations.

In the same “hawkish” tone, the unemployment rate collapsed to 4.1%, below usual forecasts of stability of 4.2% in August. In fact, analysts at Kobeissi highlight that the exact unemployment rate was 4.051%, which is 0.002% and does not round to 4.0%.

Based on this report, Kobeissi states that the Fed is 93% likely to implement a 25 basis point rate cut at the next Federal Open Market Committee (FOMC) meeting on November 7, which is also below previous market expectations of a 50% cut .

Bitcoin
Source: Kobeissi on X

Implications for the Bitcoin Price

Despite the change in the expected BPS cut, Kobeissi describes that this situation remains bullish for the financial markets, including the crypto space, even if the expected rate cut is already “priced in.”

The analysts explain that investors generally still maintain a high risk appetite and therefore all news is received as good news. Moreover, many financial market enthusiasts are hopeful of a “soft landing,” predicting that inflation could continue to decline (closer to the 2% target) while the economy remains stable.

Following the release of the employment situation report, Bitcoin already showed a positive reaction, rising 2.53% to trade above $62,000 on Friday. Therefore, the confirmation of the Fed’s expected rate cut in November will help Bitcoin’s upside long awaited bullish performance in Q4 2024.

Despite a bearish start to the quarter, the leading cryptocurrency is expected to post significant market gains based on historical reports. Amid high optimism, several analysts expect Bitcoin to reach a six-figure price mark soon. At the time of writing, Bitcoin continues to trade at $62,874, after gaining 7.65% in the past month.

Bitcoin
BTC is trading at $61,874 on the daily chart | Source: BTCUSDT chart on Tradingview.com

Featured image from MarketWatch, chart from Tradingview

By newadx4

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