Bitcoin price takes a hit as US Nonfarm Payrolls for September nearly double expectations, rising by 336,000
|- Bitcoin price slipped by 1.85% on the hourly chart following the release of the September US jobs report.
- The US Bureau of Labor Statistics (BLS) reported an addition of 336,000 jobs against market expectations of 170,000.
- With the jobs report coming in 97% above forecasts, the Federal Reserve has room to keep its rates higher for longer.
Bitcoin price had a rather negative initial reaction to the release of the US Nonfarm Payrolls for the month of September. Beating by wide margin market expectations, the jobs report highlighted the addition of about 336,000 jobs against the forecast of 170,000 jobs.
The reading noted for the month of August was also upwardly revised from 187,000 to 227,000, marking a 21% increase.
Read more - US Nonfarm Payrolls rise by 336,000 in September vs. 170,000 forecast
Bitcoin price dips to a three-day low
Bitcoin price trading at $27,381 noted a dip of 1.85% in the first hour following the release of the US Nonfarm Payrolls report. Consequently, during the intra-day trading, BTC slipped to a three-day low of $27,269, even losing the support of the 200-day Exponential Moving Average (EMA). However, at the time of writing, the cryptocurrency recovered from the initial decline to test the resistance level at $27,418.
BTC/USD 1-hour chart
With the jobs report for the month of September coming in 97% above expectations, the US Dollar Index (DXY) noted an increase of 0.45% on a daily basis at 106.80. Commenting on the report, FXStreet analyst Yohay Elam stated,
"The leg may have been off the accelerator, but it is on it once again – September's Nonfarm Payrolls shocked to the upside with a whopping gain of 336,000. They provide enough fuel for the Federal Reserve (Fed) to keep its rates higher for longer – and perhaps even a rate hike just after Halloween. September's employment report boosts the US Dollar. Any meaningful recovery in Gold and stocks will have to wait."
US federal funds rate target range is currently at 5.25 - 5.50%.
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