The United States (US) added 199,000 jobs in the nonfarm sector in November. How will a strong job market affect Bitcoin (BTC)?
A strong job market is generally considered a positive thing for the economy. However, this also indicates that the Federal Reserve (Fed) will not be cutting interest rates anytime soon.
Bitcoin (BTC) is not affected by strong job market numbers.
Nonfarm payrolls growth in November was higher than October’s growth, according to Barrons. The United States added 199,000 jobs, exceeding expectations of 175,000.
However, the salary increase is lower than the average monthly salary of 240,000 won over the past 12 months. Sonu Varghese, global macro strategist at the Carson Group, told Barrons:
“This was a much better payrolls report than expected, especially as it allayed fears about a worsening labor market amid rising unemployment rates over the past few months.”
Moreover, the unemployment rate in November was 3.7%, lower than 3.9% in October.
Read more: Top 10 Cryptocurrencies to Invest in December 2023
Strong economic factors aroused fear There has been talk among community members that the Fed may not cut interest rates in the near term. At the November Federal Open Market Committee (FOMC) meeting, the Federal Reserve kept interest rates unchanged at 5.25% to 5.5%.
Last October, BeInCrypto reported that higher interest rates could become the new norm.
Bitcoin price remained resilient despite strong employment figures in the non-farm sector. In fact, at the time of writing, the price of Bitcoin is 0.4% higher than when the non-farm payrolls figures were released. This indicates that Bitcoin’s correlation with macroeconomic factors may have decreased during the recent bull market.
Read more: 7 cryptocurrencies you need in your portfolio before the next bull market
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