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
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.
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.