:quality(82)/9c37b4a1ac64454b9f7216470842ca26 "Weak US Jobs Report: Bitcoin and Gold Surge")
Weak US Jobs Report: Bitcoin and Gold Surge
- United States employers added almost no jobs in September, falling far short of the positions economists had projected and driving the unemployment rate to 4.2%, kr.beincrypto.com reported.
- The Bureau of Labor Statistics released the employment figures at 8:30 a.m.
- Weak economic indicators typically signal trouble for traditional labor markets, but the September jobs report triggered an immediate upward surge in alternative assets.
United States employers added almost no jobs in September, falling far short of the positions economists had projected and driving the unemployment rate to 4.2%, kr.beincrypto.com reported. Despite the weaker-than-expected labor market data, financial markets rallied as the drop in hiring fueled expectations for monetary policy shifts, pushing both gold and bitcoin prices higher within minutes of the official government release.
Labor Statistics Show Broad Hiring Stagnation
The Bureau of Labor Statistics released the employment figures at 8:30 a.m. Economists surveyed ahead of the report had anticipated roughly 90,000 new positions. The agency noted that employment showed little change across all major industry groups. Meanwhile, the previous month’s figures were revised, with employers having added 162,000 jobs in August according to initial estimates. The unexpected slowdown in hiring pushed the national unemployment rate up to 4.2%, exceeding the 4.1% rate that analysts had projected.
Bitcoin and Gold Surge as Traders Re-price Rate Odds
Weak economic indicators typically signal trouble for traditional labor markets, but the September jobs report triggered an immediate upward surge in alternative assets. According to TradingView data cited by kr.beincrypto.com, gold prices jumped from approximately $4,178 to $4,227 per ounce in a matter of minutes following the announcement. Bitcoin experienced a parallel rally, climbing from roughly $86,450 to nearly $87,230. Bitcoin later traded at $86,767, marking a 3.48% gain over a 24-hour period. This price movement marked the second time during the week that both assets spiked within minutes of a major economic release, following a similar reaction on Wednesday when a key U.S. inflation reading dropped to 3.4%.
Millions Wiped Out in Short Position Liquidations
The sharp, sudden price increase caught bearish crypto traders off guard, leading to significant liquidations across derivatives exchanges. Cryptographic derivatives data platform CoinGlass reported that 3천2백51만 달러 in positions using borrowed funds were wiped out within one hour of the employment data release. Out of that total, 2천7백53만 달러 originated from traders holding short positions betting on a price decline. Bitcoin alone accounted for roughly 2천5십만 달러 of those short-position losses as exchanges automatically closed out positions when the market moved against them.
Federal Reserve Weighs Stalling Employment Against High Treasury Yields
The latest labor data complicates the policy outlook for the Federal Reserve, which raised benchmark interest rates in September. Higher interest rates generally increase the appeal of interest-bearing assets like bank deposits and government bonds over non-yielding assets such as gold and bitcoin. J.P. Morgan continues to project one more rate increase before the end of the year, while 10-year U.S. Treasury yields touched a 24-year high during the week.
Analysts are watching to see if the cooling labor market will force the central bank to alter its path ahead of the December policy meeting.