Bitcoin Stalls Above $85,000 as Weak Jobs Report Cuts Odds of an October Rate Hike
By Unchained
AI summary of the source article
Bitcoin traded around $86,250 after reaching over $86,600, stalling short of its late-September peak above $87,000. Market sentiment was influenced by the U.S. Bureau of Labor Statistics report showing employers added only 29,000 jobs in September, missing economist forecasts of over 80,000. Consequently, CME's FedWatch tool showed the odds of an October 28 Federal Reserve rate hike dropped to 17% from approximately 36% a week prior. Despite the lower probability of an October move, FedWatch indicated that expectations for a December rate hike remained above 75%.
Why it matters
Slowing employment growth reduces expectations for near-term Federal Reserve rate hikes, influencing liquidity conditions and market sentiment across cryptocurrency and digital asset trading.
Key facts
- U.S. employers added 29,000 jobs in September against expectations of more than 80,000, while unemployment held at 4.2%.
- CME's FedWatch tool lowered the odds of an October Fed rate hike to 17%, down from near 36% a week earlier.
- Bitcoin fluctuated between $84,250 and $86,600 following the employment data release, trading around $86,250.