The US Bureau of Labor Statistics (BLS) released payroll data for the nonfarm sector. 263,000 Job added in November.
As an initial reaction, Bitcoin registered a 1.4% decline and found support at $16,780.
Employment growth puts more pressure on the Fed
US nonfarm payrolls were expected to grow by 200,000 in November. A higher-than-expected 261,000 additional non-farm jobs were added last month.
On November 2nd, the Federal Reserve (Fed) raised interest rates by 75 basis points for the fourth time in a row. This is partly because the US labor market remains strong.
But hopes of a slowing labor market have renewed hopes that the pace of rate hikes may ease. Agron Nikai, MUFG Bank economists agreed with this view. But he also noted that inflation has not been contained.
“The Fed may slow down the pace of rate hikes, but it is far from a complete stop.”
But hopes of an easing of rate hikes have faded as November’s jobs report again beat expectations.
bitcoin drop
Bitcoin was trending upwards from local bottoms at $16,850 in the lead-up to the release of BLS data. The uptrend culminated in him at $17,100 on the eve of the salary announcement.
In the subsequent candlestick at 13:30 (UTC), the bears pushed Bitcoin price down to $16,780 at press time.
