Bitcoin price tumbled over 4% after the U.S. Bureau of Labor Statistics released non-farm payroll data for September. The U.S. unemployment rate fell to 3.5%, below the expected 3.7% in September. Moreover, the probability of a 75 bps Fed rate hike in November has jumped over 80% from an earlier value of 75%.
The U.S. non-farm payroll data for September comes in better than expected. The unemployment rate fell to 3.5%, below market expectations of 3.7%, the same as the July data. Also, the unemployment rate in August was 3.7%.
Moreover, the number of unemployed declined by 261k to 5.75 million in September. Whereas, the number of employed people increased by 204k to 158.9 million.
As a result, the crypto and equities market tumbled due to the hawkish stance of the Federal Reserve. Bitcoin price tumbled hard from $20,020 to $19,592 within minutes. As per CoinMarketCap, the BTC price is trading at $19,640 at the time of writing.
Ethereum price also dropped over 3% from $1,356 to a low of $1,329. The ETH price is currently trading at $1,337. Other cryptocurrencies also fell after the U.S. jobs data.
The U.S. stock market indexes S&P 500, Nasdaq 100, and Dow Jones fell over 1% in the pre-market hours. The U.S. dollar index (DXY) also soared to a high of 112.83 after the U.S. jobs report, causing the crypto and stock prices to come under pressure.
The increase in payrolls in September will cause the Fed to have a hawkish stance regarding the November rate hike. Several experts have raised concerns over the Fed’s hawkish stance pushing the U.S. economy into recession. However, the Fed commits to tame inflation under standard limits.
According to economist Jeremy Siegel, the biggest threat isn’t inflation, it’s the recession. The Federal Reserve is being overly aggressive with its monetary policy.
As per CME FedWatch Tool, the probability of a 75 bps rate hike in November has jumped from 75.2% to 81.6%. Moreover, the probability of a 50 bps rate hike in December is 63.3%.
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