The Bureau of Labor Statistics (BLS) released nonfarm payroll data for November, revealing that 263,000 jobs were added. As an initial reaction, Bitcoin fell 1.4%, finding support at $16,780.
Job growth puts additional strain on the Fed
Nonfarm payrolls in the United States were expected to rise by 200,000 in November. The previous month saw a better-than-expected increase in nonfarm employment of 261,000.
The Fed raised interest rates for the fourth time in a row on Nov. 2, owing in part to continued strength in the labor market in the United States.
However, expectations of a labor market slowdown fueled optimism that the pace of rate hikes would slow. Agron Nicaj, Economist at MUFG Bank, agreed. He did, however, point out that inflation is far from under control.
“The Fed may slow the pace of rate hikes, but they are not at a point where they will stop completely.” However, with November’s better-than-expected job figures, hopes of a pause in rate hikes have faded.
Bitcoin falls in value
Bitcoin had been trending higher in the run-up to the release of BLS data, having reached a local low of $16,850. On the eve of the payroll announcement, the uptrend peaked at $17,100.
The subsequent 13:30 (UTC) candle saw bears drive the price of Bitcoin down to $16,780 at the time of publication.
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