Bitcoin
Bitcoin (BTC) price rises above $60,000 after job shortage
The U.S. economy added 175,000 jobs in April, according to the government’s Nonfarm Payrolls report released Friday morning. That number flies in the face of economists’ forecasts of 243,000 jobs and March’s 315,000 (which were revised from the previously reported 303,000).
The unemployment rate for April was 3.9%, compared to forecasts of 3.8% and 3.8% for March.
The price of bitcoin (BTC) jumped more than 1% to $60,100 in the minutes following the news.
Interest rates and the US dollar have risen sharply in 2024, especially in recent weeks, as market expectations of a slowdown in economic growth and inflation have failed to materialize. Four months ago, a series of five or six 2024 interest rate cuts by the US Federal Reserve were priced into forward markets, but before today, that number had been reduced to one or two. according to the CME FedWatch tool.
In fact, rising interest rates have started to enter the chat. At his post-FOMC press conference on Wednesday afternoon, Fed Chairman Jerome Powell was asked more than once whether the central bank was considering the idea that rates needed to be raised. Powell poured cold water on the idea, but continued strong job growth and elevated inflation could force the Fed’s hand at some point.
This tighter-than-anticipated monetary policy is certainly among the series of factors that have seen bitcoin fall around 20% from its all-time high reached in mid-March, but this morning’s report suggests a change, a possible change in trend and prices are bouncing.
Traditional markets are also taking the news well. U.S. stock index futures are now higher by more than 1% and the 10-year Treasury yield is down 11 basis points to 4.47%. The dollar index fell 0.8% and the price of gold rose 0.8% to $2,329 per ounce.
A check of other details in the report also shows some weakness, with average hourly earnings in April rising 0.2%, versus forecasts of 0.3% and 0.3% in March. On an annual basis, average hourly earnings increased 3.9%, versus March forecasts of 4% and 4.1%.