Breaking: US Job Data Comes In Hot Dampening Bitcoin Rally Hopes

The US job data by the Labor Department showed that the nonfarm payrolls increased by 177,000, down from 228,000 recorded in the prior month. However, it still comes in hotter than Wall Street expectations, putting pressure on investors’ hopes for riskier assets like Bitcoin and altcoins. Notably, the unemployment rate stayed steady at 4.2%, with the overall market now eying what the Fed’s move will be with their rate cut plans.

US Job Data Weighs On Crypto Market Sentiment

The latest Labor Department report showed that the US nonfarm payrolls came in at 177,000 in April, up from the market expectations of 133,000. However, it marks a sharp decline from the robust 228,000 figure recorded in March.

On the other hand, the unemployment rate remained unchanged at 4.2% from the prior month and came in tandem with Wall Street expectations. This latest US job data indicates that the ongoing macroeconomic pressure, like the US-China trade war and other factors, has weighed on the economy.

Despite that, this hotter-than-expected job data could be a bearish sign for Bitcoin and altcoins. Now, the market eagerly awaits cues from the central bank ahead, especially as Donald Trump also warned of a slowing economy if the central bank doesn’t go for a rate cut decision.

Bitcoin Rally To Stall?

BTC price today has continued to move upward, soaring past the $97K mark again just after the US job data. Interestingly, investors seem to view the jobs report as a modest positive, as the payroll growth, although above expectations, shows a slowdown from the previous month’s strong numbers.

Furthermore, it is also evidenced by the US Dollar Index Futures going down by 0.42% to $99.635 following the release. However, the US 10-year Bond Yield rose more than 1.3% at the same time. Talking about the Fed rate cut plans, it appears that the central bank will keep the interest rate unchanged at their upcoming meeting next week, the CME FedWatch Tool showed.

However, the recent on-chain metrics and market trends hint that Bitcoin may continue to move upward in the coming days. For context, the US Bitcoin ETF has continued to see inflows, after a brief pause till mid-April, indicating a renewed investors’ confidence.

Meanwhile, investors should still exercise caution, given the ongoing market uncertainties and Trump tariff tension. Besides, it is also to be seen if BTC could hold the bullish momentum ahead, with major events awaiting in the coming week.