The United States (US) added 199,000 jobs in the non-agriculture sectors in November. How does a strong job market impact Bitcoin (BTC)?
A strong job market is considered bullish for the economy in general. But, it also indicates that the Federal Reserve (Fed) will not cut interest rates anytime soon.
Bitcoin (BTC) Remains Unaffected by Strong Job Market Numbers
According to Barrons, the non-farm payroll growth in November was higher than October’s growth. The United States added 199,000 jobs, higher than the expectations of 175,000 jobs.
However, the payroll gain number is below the monthly average gains of the past 12 months, which is 240,000. Sonu Varghese, global macro strategist at Carson Group, told Barrons:
“This was a much better than expected payroll report, more so because it puts to bed fears about a deteriorating labor market amid a rising unemployment rate over the last several months.”
Moreover, the unemployment rate in November fell to 3.7%, lower than October’s 3.9% rate.
Read more: Top 10 Cryptocurrencies to Invest in December 2023
US Job Market Growth Since November 2022. Source: Barron’s
The strong economic factors have ignited fears among community members that the Fed might not cut interest rates in the near term. During November’s Federal Open Market Committee (FOMC) meeting, the Fed left the interest rate on hold at 5.25%-5.5%.
In October, BeInCrypto reported that higher interest rates might become a new normal.
Bitcoin’s price remained resilient to strong non-farm payroll numbers. In fact, as of writing, the price of Bitcoin is 0.4% higher compared to when the non-farm payroll numbers were announced. This indicates that Bitcoin’s correlation with macroeconomic factors might have decreased amidt the recent bull rally.
Read more: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
BTC/USDT, 30-minute chart, Binance. Source: TradingView
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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