The U.S. Bureau of Labor Statistics released data on nonfarm payrolls (NFP) and unemployment figures for June on July 7. The NFP came in at 209,000 for June, below market expectations of 225,000. It’s the lowest reading since December 2020, but it remains more than twice the 70,000-100,000 per month needed to keep up with the growth in the labor force. Nonfarm payrolls came in at 306,000 last month.
Meanwhile, the The unemployment rate was in line with market expectations at 3.6%, but fell from May’s seven-month high of 3.7%. The job data points to an expected economic slowdown in the US the Federal Reserve can continue to raise interest rates to fight inflation.
While the US dollar index (DXY) fell below 102.75, signaling that the crypto market will rise and Bitcoin could move back above $31k, the tight labor market is bearish for the economy. Job creation is also positive, but the reliance on government jobs for 28% of additions points to a lack of robust growth in the private sector. This comes after strong ADP employment data showed 497,000 new jobs in June.
NFP comes in worse than expected.
Markets respond directly to it $DXY correct.
— Michael van de Poppe (@CryptoMichNL) July 7, 2023
Overall, the macroeconomic outlook remains challenging for Bitcoin, with government bond yields rising rapidly and returning volatility in the crypto and stock markets. The CME FedWatch tool indicates a near 90% probability of a rate hike of 25 basis points at the July FOMC meeting.
Keep in mind that +209,000 jobs is still a good (not great) number, but the renewed acceleration in nominal wage growth, flat LFPR and falling unemployment rate represent a RESILIENT AND DYNAMIC LABOR MARKET.
— Caleb Franzen (@CalebFranzen) July 7, 2023
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Bitcoin and Ethereum prices are rising
Bitcoin and Ethereum prices are rising due to the weakness of the US dollar following the recent jobs reports. Both BTC and ETH were up 1% following the non-farm payrolls and unemployment numbers.
BTC price is currently trading at USD 30400, up 2% from the intraday low of USD 29,777. The 24-hour high for Bitcoin is $31463. Meanwhile, ETH price is currently trading at $1871, up 1% in the last 24 hours.
Also Read: US Fed Powell, ECB Lagarde Aggressively Hawkish, Can Bitcoin Price Still Reach $35,000?
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Varinder has 10 years of experience in the Fintech sector, with more than 5 years dedicated to blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles and newspapers. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post How Bitcoin, Ethereum Price Is Moving As US Unemployment Rate And Nonfarm Payroll Fall?
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