US Job Data Dampens Market Sentiment, Bitcoin To Witness Further Decline?

The latest US Job data showed that the nonfarm payroll data figures came in at 254,000 in September, more than the market expectations. The unemployment rate also comes below the market estimates, dampening the market sentiment, and indicating a further decline in Bitcoin and altcoins prices. Notably, this set of data is crucial for the US Federal Reserve to decide its monetary policy plans. Besides, it also influences the broader financial market sentiment, let alone the crypto market.

US Job Data Dampens Market Sentiment

The latest US Job data by the Labor Department showed that the US nonfarm payrolls figures were at 254,000, a significant jump from the Wall Street anticipation. On the other hand, the unemployment rate comes in at 4.1% in September, down from 4.2% in the prior month. Notably, the market was anticipating the unemployment rate to come in at 4.2%, unchanged from the prior month.

Meanwhile, the latest data has dampened hopes over a potential 50 bps Fed rate cut at the upcoming gathering of the central bank officials. Notably, this set of data is closely watched by the Fed officials and influences the central bank’s decision in their rate cut plans.

It’s worth noting that cooling non-farm payroll data and a rising unemployment rate tend to boost the crypto market sentiment. Having said that, the recent data signals a rising labor demand in the US, which has sparked discussions if the Federal Reserve will move ahead with hawkish plans in the coming days.

Bitcoin To Witness More Decline Ahead?

Bitcoin and the top altcoins tend to showcase a positive performance in October, as well as in the final quarter of the year. However, the recent US Job data appeared to have weighed on the market sentiment, indicating a tightening monetary policy by the US Fed.

During writing, BTC price was up 1.4% to $61,408, after touching a high of $61,737.09 recently. Its trading volume declined 21% to $32.44 billion. Notably, altcoins like Ethereum, BNB, Solana, and others, have also surged following the data. However, after the US Job data, the US 10-year Bond yield rose 2.3% to 3.947. Simultaneously, the US Dollar Index Futures surged 0.6% to $102.35.

Meanwhile, following the release, the market is now anticipating a 25 bps Fed rate cut at the central bank’s upcoming meeting, the CME FedWatch Tool showed. Previously, the market was betting toward a 50 bps rate cut, following dovish comments by Fed Chair Jerome Powell. Besides, other Fed officials also indicated a larger Fed rate cut in the upcoming meeting previously.

Notably, the latest data has sparked discussions in the crypto market, with many now anticipating a further decline in Bitcoin price. In addition, a flurry of market pundits anticipates the altcoins to follow suit, as the top crypto usually follow a similar trend to BTC.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.