The recent price movement of Bitcoin (BTC) has been quite volatile, with the cryptocurrency experiencing a sharp decline to as low as $60,000 according to data from CoinMarketCap. However, there has been some recovery in the BTC market in the past day, largely attributed to positive jobs data coming out of the US. Financial analysts at Kobeissi have even gone as far as predicting a 25% rate cut by the US Federal Reserve in November, in light of these developments.
The latest employment situation summary released by the US Bureau of Labor Statistics has shown some positive signs for the US economy. The report revealed that jobs in the US economy increased by 254,000 in September, surpassing expectations by 107,000. Additionally, the unemployment rate dropped to 4.1%, lower than the anticipated stability at 4.2% recorded in August. Kobeissi highlights that the actual unemployment rate was 4.051%, just shy of rounding off to 4.0%.
In response to this positive jobs data, Kobeissi suggests that there is a high likelihood (93%) of the Fed implementing a 25 basis points rate cut at the upcoming Federal Open Market Committee meeting on November 7. This prediction is lower than the previously expected 50% rate cut, indicating a more optimistic outlook on the economy.
Despite the expected rate cut, Kobeissi believes that the situation remains bullish for financial markets, including the crypto space. Investors are displaying a high risk appetite, and all news is being received positively. The expectation of a “soft landing” in terms of inflation and stable economic conditions further supports this positive sentiment. Following the release of the employment report, Bitcoin saw a 2.53% increase, trading above $62,000 on Friday. The confirmation of the anticipated rate cut by the Fed in November is expected to contribute to Bitcoin’s bullish performance in the fourth quarter of 2024.
Even though the quarter started off bearishly, historical data suggests that Bitcoin is likely to see significant market gains. With high levels of optimism in the market, several analysts are predicting that Bitcoin could reach a six-figure price soon. As of now, Bitcoin is trading at $62,874, marking a 7.65% gain in the last month.
In conclusion, the recent positive jobs data from the US and the expected rate cut by the Fed have had a significant impact on the financial markets, including the cryptocurrency space. Investors are optimistic about the future, and Bitcoin’s performance in the coming months is anticipated to be bullish. With the potential for further market gains, Bitcoin could soon reach new price milestones, solidifying its position as a leading digital asset in the financial landscape.
Source: Kobeissi on X
BTC trading at $61,874 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from MarketWatch, chart from Tradingview
