Bitcoin Dips on Weak US Jobs Data, Despite October’s 11% Gain

Bitcoin retreated on Friday, November 1, 2024, following the release of disappointing US employment data. This decline came after a strong October performance, where Bitcoin had gained 11.1%.

The US Labor Department’s October jobs report showed only 12,000 new positions added, far below the 100,000 forecasted. The unemployment rate remained steady at 4.1%.

This weak job growth reignited recession fears but could influence the Federal Reserve’s decision-making process. The Federal Open Market Committee (FOMC) is set to meet next week.

The weak employment figures might make committee members more inclined to consider interest rate reductions. Danilo Igliori, Chief Economist at Nomad, suggested that the low job creation might be linked to hurricanes.

These storms hit the southern United States in October. As of 10:48 AM Brasilia time, Bitcoin traded at $70,543, down 1.3% in 24 hours.

Ethereum fell 2.1% to $2,547. The total cryptocurrency market capitalization stood at $2.47 trillion. Spot Bitcoin ETFs on US exchanges saw a net inflow of $32.3 million on Thursday.

This marked the seventh consecutive day of capital inflows. The BlackRock IBIT fund led with $318.8 million in net purchases.

Cryptocurrency Derivatives Market Update

The cryptocurrency derivatives market saw $250 million worth of long positions liquidated following the sudden price drop. Bernardo Bonjean, founder of Metrix, noted that leverage in futures markets has reached its highest level in 12 months.

He suggested this reflects substantial bets on the upcoming US elections. Despite the day’s losses, the Crypto Fear & Greed Index remains in the “greed” zone at 75 points, indicating overall positive investor sentiment.

As the market processes the latest economic data and anticipates the FOMC meeting, traders will closely watch Bitcoin‘s price action.

In short, the cryptocurrency’s ability to maintain recent gains amid economic uncertainty will be a key focus in the coming days.

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