Originally published on: October 04, 2024
In a surprising turn of events, Bitcoin witnessed a surge in volatility as US employment data surpassed all expectations on October 4. The price of BTC soared to nearly $62,000 on Bitstamp, reflecting a 2% increase for the day.
The US nonfarm payrolls figures, which came in at 254,000 compared to the predicted 147,000 for September, sparked positive reactions across the board. Both the S&P 500 and Nasdaq Composite Index opened higher in response to the stellar employment data.
According to trading resource The Kobeissi Letter, the remarkable performance of the US economy indicates a strong risk appetite among investors. However, Kobeissi warned that the upcoming Consumer Price Index (CPI) inflation data on October 10 must support the current narrative for markets to believe in a “soft landing” on inflation by the US Federal Reserve.
Following the release of the employment report, markets began pricing in a significant chance of a smaller interest rate cut in November, with the odds surging to 93% for a 25 basis point cut. This was a stark contrast to the earlier predictions of a 50 basis point cut next month.
In the world of Bitcoin, the cryptocurrency cleared a substantial line of ask liquidity at $61,830 during the employment data reaction, as revealed by CoinGlass. Popular trader Daan Crypto Trades hinted at a possible attempt by BTC to target liquidity worth $300 million, with a large cluster of sell orders around the $62.5K price level.
Fellow trader Rekt Capital also chimed in, highlighting that despite recent weakness, BTC price action was primed for a bullish continuation. A weekly chart showcased BTC/USD respecting a downward-sloping channel, indicating potential gains ahead.
It is important to note that this article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research before making any financial decisions.
