Bitcoin hit $62K after positive nonfarm payrolls data
Olumide Adesina•Saturday, October 5, 2024•1 min read
Bitcoin continued to rise above the $62K level following the release of positive September nonfarm payrolls data by the U.S. Bureau of Labor Statistics The government data showed 254,000 new jobs were added last month, far exceeding the 140,000 economists had predicted.
The unemployment rate dropped to 4.1 percent in August in contrast to expectations for 4.2 percent. Bitcoin was up nearly 1.5 percent and traded around $62.1K at publication.
Bitcoin’s overbought market narrative in the past five days was hit amid unpleasant macro news, such as the escalation of the Middle East conflict, still, prices are significantly lower than they were a week ago at levels above $66K. CoinGlass data historically affirms the two best months for Bitcoin have been October and November.
The US election could also be a driving force behind Bitcoin and other tokens. Historically, top assets perform positively after the election, as investors accept the new normal of the next administration.
Traders expectations for a second consecutive Fed 50 basis point rate cut at the bank’s next policy meeting, which is scheduled to take place shortly after the November elections, have been lowered in response to recent economic data, including Wednesday’s ADP jobs report and yesterday’s ISM Services report, both of which came in far stronger than expected.
Federal Reserve Chairman Jerome Powell’s remarks contributed to Bitcoin’s downward trend this week. Growing geopolitics uncertainty and the impending election in the world’s largest economy according to a research report released by JPMorgan (JPM) on Wednesday boost the buying power of bitcoin (BTC) and gold.
According to analysts led by Nikolaos Panigirtzoglou, “a Trump win in particular, aside from being supportive of bitcoin from a regulatory point of view, would likely reinforce the ‘debasement trade’ both via tariffs (geopolitical tensions) and an expansionary fiscal policy (‘debt debasement’).”.
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.