US Jobs Report Sparks Market Jitters: Will the Fed’s Rate Cut Be Enough to Reverse the Slide
[뉴욕=박재형 특파원] # Intraday downtrend continues # Futures price decline narrows # Downtrend after employment indicator announcement # Expected impact of Federal Reserve interest rate cut
On the 1st (local time), the cryptocurrency market closed with Bitcoin continuing its intraday downward trend, staying below $70,000, and most stocks continuing their downward trend. Compared to the morning, many stocks are reducing their losses.
Seven of the top 10 stocks fell, and the prices of 74 of the top 100 fell.
# Continued intraday downward trend
According to CoinMarketCap, the price of Bitcoin was $69,085.51 as of 3:55 p.m. New York time, down 1.71% from 24 hours ago.
Ethereum fell 0.43%, BNB 0.66%, Solana 1.90%, Dogecoin 1.40%, and Tron 0.01%, while XRP prices rose 1.63% and Toncoin 2.30%.
At this time, the market capitalization of the cryptocurrency market was $2.27 trillion, with Bitcoin accounting for 60.1%.
Source: CoinMarketCap# Reduced futures price decline
The Bitcoin futures price on the Chicago Mercantile Exchange (CME), the most actively traded November contract, fell by $970 to $69,495, and the December contract fell by $1,010 to $69,970.
Ethereum futures prices were traded at $2519.00, down $9.00 for November contracts, and $2534.50, down $13.50 for December contracts.
# Declining trend after the announcement of employment indicators
Bitcoin (BTC) fell for a third straight day following the release of a disappointing US employment report.
Due to this decline, leveraged long positions that had bet on the rise suffered significant losses, and according to Coinglass, $266 million worth of positions were liquidated in the last 24 hours, of which $190 million were long positions. As a result, more than 81,000 traders were liquidated.
The US non-farm employment indicator for October released today showed an increase of only 12,000 new jobs. This figure was significantly lower than the Dow Jones estimate of 100,000, and marked the slowest employment growth since December 2020. The unemployment rate was 4.1%, consistent with market expectations.
Fund inflows into Bitcoin spot ETFs are also slowing. Of the more than $3 billion in inflows in the past two weeks, an additional $32 million came in on Thursday, Farside Investors reported.
# Expected impact of Federal Reserve interest rate cut
Lina Eldeep, a research analyst at cryptocurrency investment firm 21 Shares, cited the potential impact of the Federal Reserve’s upcoming interest rate decision on Bitcoin, explaining that Bitcoin is sensitive to inflation indicators.
Eldeep added, “There is a 91% probability that the Federal Reserve will cut interest rates by 25 basis points,” adding, “An interest rate cut is likely to have a positive impact on Bitcoin by reducing borrowing costs.”
Meanwhile, the U.S. stock market started November on the rise. The Dow Jones Industrial Average rose 0.7%, and the S&P 500 and Nasdaq Composite Index rose 0.5% and 0.8%, respectively. This is the result of the strength of major technology stocks, including Amazon.
Breaking news through Block Media Telegram (click)
Cryptocurrency analyst “Bitcoin is the calm before the storm, a trend similar to gold”