Breaking: U.S. Jobs Data Comes In Above Expectations, Bitcoin Price Rises

The U.S. jobs data has come in above expectations, with the nonfarm payrolls and unemployment rate rising last month. This has sent mixed signals to market participants, with the Bitcoin price rising and sharply dropping amid the data release.

U.S. Jobs Data Sparks Bitcoin Price Reaction

Bureau of Labor Statistics (BLS) data shows that the U.S. added 64,000 jobs in November, above expectations of 50,000. Meanwhile, the U.S. lost 105,000 jobs in October, down from the 119,000 jobs added in September.

The unemployment rate rose to 4.6% last month, the highest since September 2021 and above estimates of 4.5%. Notably, the Bitcoin price has sharply reacted on the back of the U.S. jobs data release.

TradingView data shows that BTC first surged above $87,000 before then pulling back to around $86,800. At press time, the flagship crypto is trading below just the psychological $87,000 level as market participants gauge what this data means for monetary policy.

The higher-than-expected nonfarm payrolls suggest that the labor market may be recovering, which is typically bearish for BTC and the broader crypto market. However, the rise in unemployment sends a different signal, suggesting that the labor market is still weakening.

Meanwhile, this U.S. jobs data marks the first major macro report since the Fed cut rates last week. Fed Chair Jerome Powell suggested during the FOMC press conference that they may hold off on cutting rates for now.

The market will now turn its attention to the CPI data, which drops on December 18. The Fed remains divided on whether to prioritize the labor market or inflation, and this data will provide a clearer picture heading into the January FOMC meeting.

Rate Cut Odds Remain Unchanged

CME FedWatch data shows that the rate cuts have remained unchanged amid the U.S. jobs data release. There is currently a 27% chance that the Fed will lower rates by 25 basis points at the January FOMC meeting.

Meanwhile, there is a 73% chance that the Fed will keep rates unchanged. Further data from the CME FedWatch shows that traders expect the Fed to make the first rate cut of the year at the April FOMC meeting.

The current median projection is that the Fed will make only one 25-basis-point cut next year. However, Chicago Fed president Austan Goolsbee has stated that he expects them to make more cuts than the median projection.