Crypto Market Fumbles Post U.S Unemployment Data Release

• Pre-market trading saw declines of more than 1% for the S&P 500.
• Non-farm payrolls in the United States for September came in higher than forecast.

When the September non-farm payroll report from the U.S. Bureau of Labor Statistics was made public, the price of bitcoin dropped by more than 4 percent. The unemployment rate in the United States dropped to 3.5% in September, lower than the forecasted 3.7%. In addition, the likelihood of a rate rise by the Federal Reserve of 75 basis points in November has increased to above 80%, from 75% before.

Non-farm payrolls in the United States for September came in higher than forecast. Below market predictions of 3.7% and unchanged from July figures, the jobless rate dipped to 3.5%. The unemployment rate was 3.7% in August.

All Eyes on Next Interest Rate Hike

Previously because of the Federal Reserve’s aggressive approach, the crypto and stock markets crashed. Bitcoin’s value dropped precipitously from $20,020 to $19,592 in a matter of minutes. At the time of writing, the BTC price is $19,440, as reported by CMC.

There was a 3% decline in the price of Ethereum, from $1,356 to a low of $1,329.  In the wake of the U.S. employment report, prices for other cryptocurrencies also dropped.

Pre-market trading saw declines of more than 1% for the S&P 500, Nasdaq 100, and Dow Jones. After the U.S. employment data, the U.S. dollar index (DXY) jumped to a high of 112.83, putting downward pressure on crypto and stock prices.

The Federal Reserve will take a hawkish position on the next rate rise in November as a result of the September payrolls increase. There are worries that the Fed’s aggressive posture may lead to a recession in the United States, according to a number of analysts. But the Fed has promised to keep inflation within acceptable levels.

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