What January US Jobs News Means For Bitcoin (BTC) Price In Coming Months?
Bitcoin News: The January US jobs report indicated the inherent strength of the labor market amid concerns of high inflation in the country. This could potentially have a significant bearing in the Federal Reserve‘s interest rate hike decisions in the coming months. However, the nominal wage growth declined to 4.4 percent, the lowest yearly rate since August 2021. Meanwhile, the Bitcoin (BTC) price showed an immediate negative reaction to the robust jobs data.
Also Read: Will Metaverse Tokens Outperform Bitcoin (BTC) And Ethereum (ETH) In 2023?
The robust labor market scenario could well be a deterrent to the potential ‘Fed pivot’ sometime later in 2023. Growth in jobs numbers would mean the Fed’s continued efforts to control inflation to be able to achieve the 2% target. The S&P 500 Index, which largely has a positive correlation with the Bitcoin price, was at point down by around 1.50% in response to the jobs data.
Jobs Data Above Market expectations
In reaction to the January jobs report, the U.S. Dollar Index (DXY) rose significantly on Friday. As of writing, DXY stands at 102.59, up 0.83%. Owing to the Dollar’s inverse relation to Bitcoin, the BTC price decline after the data release. However, Bitcoin price swiftly recovered from the loss, to the $23,600 range. As of writing, BTC price stands at $23,403, down by 1.637% in the last 24 hours, according to CoinGape price tracker. In January, there were as many as 517,000 jobs added to the economy, which was above expectations.
According to Bureau of Labor Statistics report for January,
“According to the US jobs report, the economy added 517,000 jobs in January, for an average monthly gain of 356,000 over the past three months. The number of jobs added in January came in well above market expectations. Employment growth in November and December was revised up by a combined 71,000 jobs.”
Also Read: Shiba Inu Price Decouples; 5 Trillion SHIB Moved; What’s Happening?
- ASTER to Launch Phase 2 Airdrop on October 10 as Open Interest Tops $5B in Two Weeks
- El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- 99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
