Bitcoin, ETH, XRP Jump as Wall Street Sees Soft US Nonfarm Payrolls Data
Highlights
- Wall Street sees nonfarm payrolls likely slowed to 110K from 175K last month.
- Bitcoin, ETH, and XRP rebounded as Fed Chair Kevin Warsh’s comments signaled no urgency to hike rates.
- Fed rate hike odds in September fell below 50% amid signs of cooling US labor market.
- Progress in US-Iran peace talks and other factors triggered crypto market rebound.
Bitcoin (BTC), Ethereum (ETH), XRP, and other major crypto surged over the past 24 hours. This comes as investors responded to Wall Street’s forecasts on slowing nonfarm payrolls, indicating a cooling labor market and Fed rate cut odds.
Bitcoin climbed more than 4% to hit a 24-hour high of $61,223 after weaker-than-expected ADP private payroll data and lower oil prices eased inflation concerns. The moves came amid broader market optimism, the US-Iran peace talks, and a sharp fall in ISM Manufacturing PMI prices.
Wall Street Giants Estimate Slowing US Nonfarm Payrolls
The U.S. Bureau of Labor Statistics (BLS) will release June’s US nonfarm payrolls and unemployment rate on July 2. This jobs data release could significantly impact Bitcoin price and the crypto market direction.
Wall Street economists estimated that Nonfarm payrolls would come in at 110K in May, reinforcing signs of slowing labor market conditions. Notably, US jobs data has dropped from 172K last month, which could boost hopes of a Fed rate cut this year.
Citigroup estimated nonfarm payrolls at more than 25K while Goldman Sachs and Standard Chartered projected 130K. Meanwhile, JPMorgan estimated jobs data to come in at 125K, while BofA, HSBC and Capital Economics’ forecasts are in line with economists.
Meanwhile, the unemployment rate is projected to hold steady at 4.3%. Average hourly earnings are also expected to rise 0.3% for the month, causing the annual rate to slip from 3.6% to 3.4%.
Bitcoin, ETH, and XRP Rise amid Fed Rate Cut Hopes
Bitcoin, ETH, and XRP rebounded after Fed Chair Kevin Warsh’s comments. He said inflation expectations had eased over the past month, signaling there was no urgency to hike rates.
Meanwhile, CME FedWatch Tool data showed nearly 50% probability of a Fed rate hike in September. Signs of progress in indirect US-Iran talks pushed oil prices lower and eased inflation concerns, causing Bitcoin to climb above $61K.
The US dollar index (DXY) fell to 101.12 on Thursday, with investors closely watching the US nonfarm payrolls report. Also, the 10-year Treasury yield climbed to 4.49%, maintaining recent gains.
Bitcoin price has pared some gains over the past few hours, with the price currently trading at $60,095. The 24-hour low and high are $58,263 and $61,223, respectively. Top altcoins ETH and XRP are trading at $1,615 and $1.05, respectively.
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