Recent market data shows that interest rates have plummeted all across the United States, and traders have sought to place bets in the market. This is amid the Fed’s final touches on monetary policy. In addition, last October, jobs recorded a rise but still did not meet its forecast of 180K.
Bitcoin is still leading the crypto market as its price is almost half its initial all-time high. BTC is currently consolidating at the $34,000 level as an anticipated price increase prediction still holds, according to expert analysis. Could this mean a potential surge is gathering enough momentum for a price increase? Let’s find out.
150K jobs were added in the United States last October
The United States’ recent report on its economy showed an addition of 150K jobs in October. This was shy of 30K, as economists expected the number to be 180K. However, this isn’t something new in the region as its previous record was double the current number, recording 336K jobs added in September.
The US has shown its unemployment rate rise to 3.9%, beating its initial September forecast by 0.1%. The forecast was expected to be 3.8%. The downward revisions of August and September totaled 101K as August recorded an addition of 266K jobs in the US.
In the crypto realm, Bitcoin still stands at the top, but recent developments in its market value seem to show a correction from its fresh high of $35,000 on November 2. Its recent price remained lower in its session and recorded prices at $34,300.
Following the daily earning reports, the average hour earnings rose by 0.2% in October, which was also a lower percentage than its September forecast of 0.3%. Additionally, the year-over-year average hourly earnings rose by 0.1% from its forecast of 4.0% to 4.1%. Still, this was a drop from the record in September of 4.3%.
The recent developments in the market have paved the way for adding fixed incomes to investor portfolios. Presiding this was the US bond market turning tail in the last two weeks and assured moving from panicky selling actions to Federal Reserve rates hiking.
The 10-year Treasury yield also experienced a decrease to 4.64% after the unemployment news. This was a drop from its push through 5%. Similarly, a yield of 4.97% was recorded ahead of the report based on the two-year Treasury gains.
The jobs report highlighted a recovery in healthcare and government sector employment, which overcame the negative impact of strikes in the manufacturing sector.
Dow Jones Industrial Average futures increased 0.3% in response to the news, mirroring gains in the technology-focused Nasdaq-100 and the broader S&P 500 futures.
The 2-year Treasury yield decreased to 4.912%, and the 10-year Treasury yield likewise declined to 4.579% on the bond market. These declines reflect an increasing conviction among investors that the Federal Reserve might moderate its stringent rate-hiking approach.
Market implications of the recent job report
The falling gains have affected sticks and assisted in pulling them out of a slump session that commenced in late July 2023. Proof of this is the S&P 500 index reaching a high of about 5%. This was also recorded in Nasdaq and only accounts for the past few sessions.
Bitcoins (BTC) price increase over the past few weeks has been linked to its pending spot ETF approval by the United States Securities and Exchange Commission (SEC). Market experts believe this approval could shift how both institutional investors and retail traders invest in Bitcoin.
However, based on the falling interest rates and the reignited surge in the stock market, BTC could benefit and also record an increase in its market value.
Market data has been used to predict its price increase of well over $40,000 in the first months after the awaited Bitcoin-spot Exchange-Traded Funds (ETFs) approval. In the year ending 2024, if the approvals go through, BTC could start at $50,000. This can also be attributed to the expected halving in 2024, which could limit its supply and lead to an increased demand that, in turn, grows its market price.