Home Business Bitcoin price skyrockets following news from the US job market

Bitcoin price skyrockets following news from the US job market

The Bitcoin price temporarily shot up to the $44,000 mark yesterday evening, the European stock markets opened in the green and the Asian market is also in the black. It appears that the market is particularly optimistic about rapid interest rate cuts by the Federal Reserve today after new information on the US labor market was released yesterday.

What happened to the American job market yesterday and what does it mean for the Bitcoin price?

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US labor market weakens

On Tuesday it became known that the American labor market is in worse shape than initially assumed. This is fueling rumors of rapid interest rate cuts by the US Federal Reserve and bullish for the Bitcoin price.

“New signals of a slowdown in the labor market are reinforcing rumors about the end of the US Federal Reserve’s interest rate hike cycle. Now all eyes are on the Federal Reserve’s next interest rate meeting next Wednesday,” said Hebe Chen of IG Markets.

Officials at the European Central Bank also indicate that they expect the first interest rate cuts in the near future. According to the responsible official, there is currently a “remarkable decline” in inflation in the euro zone.

The graph above shows the sharp decline in the number of job openings in the United States. Where a value of 9.31 million was expected, there are currently still points But 8.73 million vacancies available.

What does this mean for the Bitcoin price?

In principle, this is positive news because a cooling labor market means the Federal Reserve may cut interest rates sooner. But this data also harbors dangers.

If the labor market slowdown in the United States and the economic slowdown reach extreme proportions, it is still possible that we could enter a recession.

This could be the only thing that could really put a stop to the explosive Bitcoin price rises we are currently experiencing.

Things are currently looking extremely bullish for Bitcoin on the blockchain. Unlike in 2021, long-term investors are not yet deciding to sell their Bitcoin (see chart above).

This could theoretically mean that we still have a long way to go in terms of increases

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