Summary
- The US labor market weakened and job postings declined over 27% YoY.
- Bitcoin’s price surged following today’s economic data, targeting $68,000.
Bitcoin’s price recorded a sudden surge earlier today towards the $68,000 price level after important US economic data was released.
US Labor Market Weakens
According to new reports revealed via X by Kobeissi Letter, the US labor market continues to weaken. According to their notes, job postings have declined 27.4% YoY to their lowest levels since January 2021.
Citing data from Indeed, they also revealed that job postings have declined for 2.5 years straight, and now, they are down 45% since the February 2022 peak.
As a result, job vacancies have reached their pre-pandemic levels that have been seen back in February 2020.
Meanwhile, the US job openings reported by the BLS jumped by 329,000 from July to August, reaching over 8 million.
Data provided by Indeed is reportedly more current than the BLS-provided series, which suggests that US job openings will fall in the upcoming months, leading to more deterioration of the labor market.
A deteriorating labor market could lead the US Federal Reserve to decide on cutting more interest rates this year, which could be bullish for Bitcoin and the crypto industry.
Surging Odds For New Rate Cuts
According to data from CME Group’s FedWatch tool, the odds of a new rate cut in November have increased to over 90%.
According to CME data, the chances of the US Fed to slash rate cuts following their next November meeting have hit almost 93%, with a target rate of 450-475 bps.
Weaker labor data will most likely raise the odds of an upcoming interest rate cut in the US. The last time when the Federal Reserve decided to cut interest rates, BTC recorded a notable price rally.
At the moment of writing this article, BTC is trading close to $67,700 after earlier climbing near $67.900.
The coin is up by almost 2% in the past 24 hours, with markets hoping for more bullish moves soon, amidst optimistic predictions and a favorable political and economic environment.