Breaking: Nonfarm Payroll And Unemployment Data Slows, Bitcoin Recovery Ahead?

Mt. Gox beginning $10 billion in BTC and BCH repayments triggered a panic selloff causing Bitcoin price to briefly fall below $54,000 today. The latest nonfarm payrolls and unemployment data by the U.S. Bureau of Labor Statistics have brought a rebound in BTC price, as the jobs growth slows. It means the U.S. Federal Reserve has room for more rate cuts this year.

Jobs Growth Slows In the US

The US added 206k jobs in June against market estimates of 190k, declining from the 272k nonfarm payrolls added in May. Moreover, the unemployment rate increased to 4.1% against market expectations of 4%. Also, average hourly earnings for all employees on US private nonfarm payrolls increased by 0.3% to $35 in June, following a 0.4% increase in the prior month and slightly below market forecasts of a 0.4% gain.

According to the U.S. Bureau of Labor Statistics, job gains occurred in government, health care, social assistance, and construction.

The Fed’s preferred gauge to measure inflation dropped recently. The headline PCE inflation rate slowed to 2.6% from 2.7%, which came in line with market estimates. The annual core PCE inflation also dropped as expected to 2.6% from 2.8%.

With inflation and labor market slowing, the CME FedWatch Tool now indicates the probability of a 25 bps rate cut in September. The Federal Reserve Bank of New York President John Williams said the cooling inflation is good news, but the uncertainty remains as inflation is still above the target rate.

Wall Street giants such as JPMorgan, Goldman Sachs, and Morgan Stanley anticipate inflation to cool, with the Fed rate cut starting in September.

Also Read: Leading Telecom Company Taiwan Mobile Gets Crypto Exchange License

Bitcoin Price Performance

The US dollar index (DXY) is dropping rapidly after the recent highs, with current reading at 104.88 after jobs data. Moreover, the US 10-year Treasury yield has also dropped below 4.29% after the jobs data came in favor of the markets.

BTC price rebounded to $55,268 as investors are positive about rate cuts coming sooner. The 24-hour low and high are $53,717 and $58,727, respectively. Furthermore, the trading volume has increased by 45% as whales and other investors liquidated massively in the last 24 hours.

In the derivatives market, BTC futures increased by 0.41% in the last 4 hours, with trading in the last hour remain mixed across crypto exchanges. Buying was recorded on Coinbase.

Also Read: Over 18000 Bitcoin Options Set To Expire, Real Panic Selloff Is Yet To Come

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