Bitcoin Sees Volatility Amidst US Jobs Data Release
The price of Bitcoin (BTC) experienced a sudden drop of 2.1% as markets reacted to the release of employment data in the United States. The largest cryptocurrency saw a sharp decline to around $27,000 during the Wall Street opening on October 6. However, there was a subsequent rebound, with the price now focused on the $27,700 level.
US Non-Farm Payrolls Exceed Expectations
The volatility in Bitcoin's price was triggered by the US non-farm payrolls (NFP) report, which revealed that employment in the country had jumped to almost double the expected number for September. The data, which showed 336,000 new jobs compared to the anticipated 170,000, demonstrated the strength of the labor market and its resistance to the Federal Reserve's efforts to curb inflation with interest rate hikes.
Implications for Future Fed Rate Hike
Despite the positive labor market data, the implications for risk assets, including cryptocurrencies, were viewed negatively. Analysts noted an increasing likelihood of another interest rate hike from the Federal Reserve at the upcoming November meeting of the Federal Open Market Committee (FOMC).
Declining Bitcoin Open Interest
In addition to the price volatility, Bitcoin's open interest, which measures the number of outstanding contracts in the derivatives market, has been decreasing. This indicates a decline in market participants' interest and suggests a return to more stable market conditions.
This article does not provide investment advice. Readers are advised to conduct their own research before making any investment or trading decisions.
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