Markets rethink Fed rate cut as Bitcoin hovers around $44K on US jobs data
Bitcoin (BTC) touched $44,000 after the December 8 Wall Street open as U.S. employment data dampened market bets on an interest rate cut.
Bitcoin holds firm as jobs data weakens the US dollar
Data from Cointelegraph Markets Pro and TradingView overshadowed BTC's recent price action as risk assets reacted to new US inflation.
According to an official release from the U.S. Bureau of Labor Statistics, nonfarm payrolls came in at 199,000 and beat expectations of 190,000, while unemployment was lower than forecast at 3.7% and 3.9%.
Both pointed out that the full effect of the Federal Reserve's monetary tightening should show itself, and while other data showed already declining inflation, markets were fearful of the labor force.
Just in: Interest rates will move from March 2024 showing rate cuts to May 2024 after the jobs report.
Ahead of the November jobs report, markets saw a 60% chance of a contraction starting in March 2024.
The odds of a rate cut from January 2024 have dropped from 16% to 6%… pic.twitter.com/hFYFLVP5xv
— Kobeissi Letter (@KobeissiLetter) December 8, 2023
Data from CME Group's FedWatch Tool, however, has zeroed in on the chances of anything but a freeze in rates at next week's Fed meeting.
The US Dollar Index (DXY) saw particularly significant volatility around the data, briefly hitting its highest level since Nov. 20 before erasing gains to trade at 103.8 at the time of writing.
In the midst of consolidation, the price of BTC is suppressed
Gold fell 0.8%, while bitcoin managed to avoid an outright decline despite lower hopes for lower interest rates to come soon.
Related: ‘First Bull Market' — Bitcoin Price Sets 1st Golden Cross Weekly
The largest cryptocurrency remained locked in a multi-day trading range as traders looked for signs of a trend continuation.
“Bitcoin is still consolidating at a high level and is in a strong position after the recent movement,” noted analyst Matthew Hyland wrote in an analysis on X (formerly Twitter).
“Now clear the support to $43k.”
Associate trader and analyst Daan CryptoTrades, on the other hand, pointed to high liquidity positions directly on the price.
#Bitcoin liquidity map
Due to being in the same area for some time, it is building some thick clusters on both sides.
Specifically: 42.9 thousand dollars and 43.8 thousand dollars
Follow these steps. pic.twitter.com/Vz6eYVVwy5
— Daan Crypto Trades (@DaanCrypto) December 8, 2023
Continued attention focused on altcoins and Bitcoin, with Ether (ETH) and Solana SOL (SOL) leading the pack overnight in anticipation of a new form of “alt season”.
“Bitcoin is still consolidating around $43,000, while Ethereum is gaining momentum,” Michael van de Pop, founder and CEO of MN Trading, told X subscribers.
“The bottom of ETH/BTC is near or may be. Come two months they will be more electricity for altcoins.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
