The US economy shocked everyone today with a huge surge in job creation. Nonfarm payroll data showed that 254,000 jobs were added in September, far exceeding the expected 159,000.
This surge caught economists off guard by shattering all predictions of a labor market slowdown. At least in the near-term. Meanwhile, Bitcoin continues to battle intense volatility and an odd dependency on the stock market.
Bitcoin’s price pumped by 2% during the October 4 Wall Street open, but it’s still way below its typical support level for what is widely considered the most bullish month for cryptos.
US labor market defies expectations
For reference, economists had predicted a significantly lower number of around 132,500 jobs for the month.
Revisions by the Bureau of Labor Statistics showed that an additional 72,000 jobs were added over July and August, reinforcing just how strong the labor market has been.
But the unemployment rate barely budged, dipping only slightly from 4.2% in August to 4.1% in September. Alongside the nonfarm payroll increase, US equities reacted bullishly.
The S&P 500 and Nasdaq composite indexes both opened higher today. But public opinion is mixed. Polls show that nearly half of respondents mistakenly believe the US is already in a recession.
Bitcoin is stuck
Bitcoin remains stuck in an extremely tight consolidation. While it did see a brief 2% price increase earlier today, it’s clear that volatility has taken over.
Bitget’s chief crypto analyst Ryan Lee, pointed out that most investors are only looking at geopolitical and macroeconomic events right now.
Bitcoin has seen a 16% drop in spot trading volume. Some investors are holding back and taking a “risk-off” approach to the current market.
Lee explained that many would rather avoid putting their money at risk while global economic conditions remain unstable.
To make matters worse, trader Peter Brandt has predicted a bearish future for BTC in the form of a “three blind mice” pattern.
This pattern is generally seen as a continuation of the current trend, which for Bitcoin is bearish.
Brandt mentioned this same pattern back in December 2022, when Bitcoin was trading at around $17,000 before it slumped for weeks.
Although Bitcoin eventually broke out in January 2023, the same thing may not happen this time.
Brandt stressed that unless Bitcoin closes above $71,000 and sets a new all-time high, the market will remain locked in its lower highs and lower lows.
Meanwhile, crypto analysts like Axel Adler are reminding investors that just because October started off with gains, it doesn’t mean it will end that way.
For now, investors seem unwilling to commit, preferring to wait out the volatility and see where the broader economic data takes things.
Additional reporting by Noor Bazmi.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
