Strong US Job Data Pulls Crypto Market Lower, What’s Next?

The latest report from the US Bureau of Labor Statistics (BLS) has shown a significant surge in nonfarm payrolls (NFP) for the month of September, surpassing market expectations. This robust jobs data had an immediate impact on the market, suggesting a mixed sentiment in the market.

Notably, the spike in the job data indicates a strong labor market, potentially paving the way for the Federal Reserve to raise interest rates this year, even as wage growth slows down.

What’s In The Job Data?

In a surprising turn of events, the NFP increased by 336,000 jobs in September, far exceeding the market expectations of 170,000. In addition, the August NFP data, initially reported at 187,000, was revised upwards to 227,000, indicating a more robust labor market than previously thought.

However, despite the substantial job gains, the unemployment rate held steady at 3.8%, while the Labor Force Participation rate remained unchanged at 62.8%. These figures suggest that the US job market continues to exhibit resilience.

In addition, the report revealed a slight dip in annual wage inflation, with Average Hourly Earnings falling from 4.3% to 4.2%. The strong labor market has also raised concerns about further rate hikes by the Federal Reserve this year.

Meanwhile, the US Dollar Index surged by 0.33% on the day to reach 106.417. Additionally, the 10-year US Treasury bond yield experienced a notable increase, rising by 2.57% to reach 4.835.

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How The Crypto Market Is Reacting?

The job report seems to have fuelled concerns among investors, as evidenced by the performance of the crypto market. The market participants were eagerly waiting for the job data, as it can set the stage for the future stance of the Fed’s policy rate plans. However, the strong report suggested that the Fed still has some space to move ahead with its rate hike plans.

Meanwhile, the global crypto market declined 0.95% to $1.08 trillion following the news, with most of the major cryptos trading in red. Notably, Bitcoin price slipped 2.23% to $27,405.17 as of writing, with its last 24-hour volume rising 21.70% to $12.99 billion.

Simultaneously, the Ethereum price dropped by 1.17% to $1,625.80 after the job data. On the other hand, the XRP price was down 1.15% to $0.5194 during writing, while its one-day volume fell 16.84% to $767.48 million.

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