Bitcoin Price Reacts to Strong US Jobs Data, Rebounds After Fed Rate Cut Expectations
The price of Bitcoin bounced back Friday following stronger-than-expected jobs data in the U.S., compelling the Federal Reserve to delay cutting interest rates. The Labor Department reported that the unemployment rate increased slightly to 4% in May, with job growth accelerating beyond expectations. The unexpected report indicated that 272,000 jobs were added to the U.S. economy last month.
Bitcoin initially dipped to $70,700 from around $71,800 after the report’s release. However, the price has recovered to $71,050, showing a minor 0.4% decline over the past 24 hours.
US Jobs Data Impact on Bitcoin Price
- Bitcoin price bounced back after the release of strong jobs data in the U.S.
- Unemployment rate increased slightly to 4% in May, but job growth exceeded expectations.
- Bitcoin initially dipped but later recovered to $71,050.
Fed Rate Cut Expectations
- Federal Reserve may delay rate cuts after strong job growth in May.
- Markets see a 50% chance of a rate cut in September to stimulate economic growth.
Market Sentiments and Bitcoin’s Future
- Bitcoin price sensitive to interest rate expectations and macroeconomic data.
- Bitcoin may retest its all-time high in the coming months.
Hot Take: Bitcoin’s Reaction to Interest Rate Expectations
Bitcoin’s price reaction to higher than expected jobs data reflects its sensitivity to interest rate expectations. The market anticipates future Fed rate cuts and their impact on the economy, influencing Bitcoin’s price movement.
Source: Bureau of Labor Statistics
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