Bitcoin (BTC) showed increased volatility on Friday after weaker-than-expected US jobs data bolstered market speculation that the Federal Reserve could implement two rate cuts by year’s end.
The BTC price briefly surged to $71,500 following the jobs data release, only to dip back to around $69,000. As of now, Bitcoin holds steady at approximately $70,000.
Source: TradingView / BTCUSD
US economic data revealed a mere 12,000 jobs added in October, far below the projected 106,000. Revisions for August and September subtracted 112,000 jobs from prior reports, underscoring a softening labor market. While the unemployment rate held at 4.1%, the numbers suggest slower employment growth.
Despite recent economic fluctuations possibly influenced by hurricane disruptions, the Fed remains on track with its guidance for two rate cuts by year’s end.
Bitcoin Price Outlook: What’s Next?
Softening US labor figures provide a medium- to long-term backdrop that could support Bitcoin’s price. While the labor market shows signs of cooling, other economic indicators, such as GDP growth and strong consumer spending, paint a picture of resilience in the US economy as the Fed considers rate cuts. This environment typically benefits risk assets like stocks and cryptocurrencies.
With the upcoming US Presidential election, political factors are adding to market unpredictability. Uncertainty around the election outcome has influenced Bitcoin volatility as traders hedge against potential outcomes. Recent polling suggests a dip in confidence for former President Trump, often perceived as more pro-crypto, following certain campaign missteps.
Traders should expect further volatility in BTC price leading up to the election. A Trump victory could serve as a catalyst for an immediate BTC price boost, while a Harris win may lead to some short-term selling pressure. Analysts project a bullish end to 2024 for Bitcoin, particularly as the effects of this year’s Bitcoin halving begin to materialize, with some foreseeing BTC potentially hitting $100,000.
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