Crypto Market News: The Bitcoin price took a slump and major US stock indices rose on Friday in the initial response to a strong jobs report for the month of May 2023. The U.S. Bureau of Labor Statistics reported that total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent. The rise in jobs for May is in equilibrium with the average monthly gain of 341,000 over the past 12 months, the report said. Meanwhile, it remains to be seen how the U.S. Federal Reserve will react to the strong jobs data when it convenes to decide the Federal Funds rate between June 13 and 14.
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In this context, it is likely that the level of uncertainty around interest rate hike or pause in the upcoming Federal Open Market Committee (FOMC) meeting only increased with the jobs data. Hence, the crypto market could see significant volatility in the days to come. In the last few days, several experts and Fed officials signaled the lack of need to raise interest rates in the June meeting.
Bitcoin Price May See A Jump
In the lead up to the FOMC meeting, chances are that there will be a mixed expectation on whether the U.S. Central bank will choose to pause rate hikes or not. Currently, only 25% of respondents in the CME FedWatch Tool feel the likelihood of a rate hike in the June meeting. However, the spillover effects of the jobs data and the aftermath of the debt ceiling deal leaves chance for a momentum shift in investor sentiment, which makes it a good case for rise in Bitcoin price, at least after the Fed decision.
That the unemployment rate moved up to 3.7% could also sound a bullish alarm for Bitcoin traders, although there’s need for caution before the all important Fed meeting. Meanwhile, the S&P 500 Index, which has a history of correlation with the crypto market, saw an encouraging jump on Friday in response to the jobs data. Hence, Bitcoin could well be up for a swing upwards in the lead up the FOMC meeting. On the bearish side, CoinGape earlier reported that the top cryptocurrency may take the plunge to below $26000 and $25200 support.
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