Bitcoin price notes minor decline as US Nonfarm Payrolls report creation of 199K jobs
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- US Nonfarm Payrolls reported an increase in job creation from 150K in October to 199K in November.
- The Federal Reserve is expected to keep the interest rates stable at 5.25% to 5.50% during the next meeting on December 13.
- Bitcoin price, along with the rest of the crypto market, observed a slight decline in the past hour, as expected.
The United States Bureau of Labor Statistics (BLS), in its Nonfarm Payrolls (NFP) data, reported the creation of 199K jobs in the month of November, wildly surpassing the expectations of 180K jobs. This data, while expected to have a significant impact on the market, ended up being a low-impact event on Bitcoin price and other crypto assets.
US NFP data surpasses expectations
The creation of 199K jobs, as per the Nonfarm Payrolls report, is a sign of the US job market remaining strong despite the tightening in financial conditions. This also suggests that the likelihood of earlier rate cuts might decrease.
With the jobs report coming in higher than the market’s forecast of 180K, the unemployment rate also declined. The unemployment rate was expected to remain steady at 3.9% but instead dropped to 3.7%.
The impact of the strong jobs report can be seen in the market, wherein the probability of a rate cut has decreased considerably. Amidst cooling inflation in the US, market expectations the Federal Reserve is done with its tightening cycle are increasing, foreseing rate cuts going forward. The CME FedWatch Tool is also noting a 97.5% chance of the Fed keeping the target rate unchanged at 5.25% to 5.50% during the next Federal Open Market Committee (FOMC) meeting.
CME FedWatch Tool
Bitcoin price remains steady
Bitcoin price, along with the rest of the market, did not observe much change in the price. Trading at $43,559 at the time of writing, BTC staged a minor decline of 0.45% in the past hour.
BTC/USD 1-day chart
Similarly, the total crypto market capitalization in the 24-hour timeframe remained positive, observing a 1% increase. Crucial altcoins such as Ethereum, Cardano, Ripple, Solana and Avalanche reported positive numbers in the past hour as well.
Generally, job increases tend to strengthen the US Dollar, which has a negative impact on stocks, commodities, etc. Since crypto tends to share a positive correlation with the stock market, BTC, particularly a bearish move, is the most likely outcome.
Thus, as the FOMC makes its decision regarding the interest rates in the next meeting, Bitcoin could see some potential decrease to $42,000.
