Bitcoin (BTC) is on the back foot ahead of the key U.S. data release, which could bring pain to risk assets, including cryptocurrencies.

At press time, bitcoin was changing hands at $34,235, representing a 2% drop on the day, CoinDesk data show. Prices briefly topped the $36,000 mark early this week, extending past week’s 15% surge from near $30,000.

At 12:30 UTC, the U.S. Labor Department will release nonfarm payrolls data, which is expected to show the world’s largest economy added 180,000 jobs in October, marking a sharp slowdown from September’s 336,000 additions.

The jobless rate is forecast to hold steady at 3.8%, while the year-on-year growth in average hourly earnings likely slowed to 4% from 4.2%.

Per Ilan Solot, co-head of digital assets at Marex Solutions, better-than-expected jobs data may weigh over risk assets.

“Good data is bad for markets – The overly eager dovish interpretation of Powell’s comments heightens the risk around an upside surprise for today’s NFP data. A soft jobs data will probably propel markets higher,” Solot said in X.

The Federal Reserve held the benchmark borrowing cost unchanged at 5.25% early this week while explicitly mentioning that tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation.

That has convinced markets that the Fed’s tightening cycle has ended, and the next move will likely be a rate cut. The Fed started its tightening cycle in March last year and has since raised rates by 525 basis points. The rapid-fire rate hikes were partly responsible for the last year's crypto crash.

A better-than-expected jobs figure may dent the dovish conviction, boosting the dollar index and adding downside pressures around bitcoin.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation

Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation

Dogecoin price crossed $0.40 on Friday, after a weeklong consolidation that saw DOGE tumble 13% from last week’s peak. Derivative market reports link the DOGE rally to Gary Gensler’s  imminent exit.

More Cryptocurrencies News
Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout

Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout

The global cryptocurrency sector pulled $230 million capital inflows on Friday, as markets reacted positively to news of SEC Chair Gary Gensler’s imminent exit.

More Crypto News
Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment

Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment

Cardano (ADA) surged 24% to $0.98 on Friday following rising weekly active addresses, increased open interest and spot buying pressure.

More Cardano news
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP