After the US data arrived, BTC quickly intended to form a new peak above $92,000, but it was short-lived. The most striking thing in the report was that the unemployment rate increased to levels not seen for years. Now, let’s quickly dive into the details of the report and see what awaits cryptocurrencies.
US Employment Report
October 2021 to date US unemployment rate It did not rise to 4.4% or above. This date was the date when the Fed was preparing to increase interest rates, and the return to levels that have not been reached in the past 4 years indicates that the Fed should now act faster. What balanced this was that Nonfarm Employment for September came in at 119 thousand.
On the same days last year, the unemployment rate was 4.1% and the number of unemployed was 6.8 million. There are 7.6 million unemployed today, and despite Trump’s immigration policy, Americans do not seem to be able to find work very easily.
Revisions are also important;
- Non-agricultural employment in July was revised down by 7 thousand to 72 thousand.
- The figure for August was revised down by 26 thousand. This is a big thing, the August employment figure was -4000. If the figures had been announced correctly, Powell’s hawkish stance on the October interest rate cut would have been greatly diminished.
Possible Impact on Cryptocurrencies
There are a lot of layoffs and the details of the US employment report are not encouraging. Bitcoin 
$91,789.74 drop Even if it does, negative employment in August should change the interest rate cut expectation. For now, the discount estimate is still around 30 percent.
Considering the incentives announced by Japan this week and the increase in interest rates on its bonds, the Fed may be forced to cut interest rates in December. We will closely monitor the Fed’s statements in the coming days. While the unemployment rate is at its highest since October 2021 Fed It would be interesting if its members said at the meeting, “No, we balance unemployment with interest rate cuts.”
While the number of people who permanently lost their jobs reached 2 million, the number of temporarily unemployed decreased to 833 thousand. We will closely follow Fed members’ comments on these figures and share them here. For now, the report tells us that the December interest rate expectation on cryptocurrencies should decrease somewhat. Trump may say something about this later.
