The United States economy welcomed a total of 209,000 jobs in June, a figure that falls slightly short of the anticipated 230,000, according to the Bureau of Labor Statistics (BLS). This is markedly lower than the revised May report which documented an increase of 306,000 jobs, originally reported as 339,000. The unemployment rate, however, dropped marginally to 3.6% in June from May’s 3.7%. The anticipated figure was pinned at 3.7%.
In response to this data, bitcoin’s price (BTC) experienced a subtle hike, reaching $30,250. Interestingly, this development occurred just a day after the stunning ADP report on job additions for June caused a spike in interest rates leading BTC to slump by 3% or approximately $1,000. June’s jobs report disclosed a whopping 497,000 new jobs, obliterating expectations of 220,000.
Despite being a slight miss, the recent employment report holds significance as it discontinues an astounding 14-month run of exceeding market anticipations. It’s worth noting that the latest national employment report released prior to the Federal Reserve’s anticipated interest rate policy session this July, served to amplify speculations about the Central Bank recommencing rate hikes – a move largely expected by the markets.
On the inflation front, although the rate as quantified by the Consumer Price Index (CPI) has slid from the previous year’s 9.1% to the current 4.0%, it continues to overshadow the Federal Reserve’s target of 2%. Moreover, core CPI, which excludes the mercurial food and energy expenses, enduringly hovers at 5.3%, showing only a timid descent from last year’s 6.6% peak.
The central banking system, known for its stance that employment growth must decelerate to tackle inflation, found itself in a predicament as the job market remained robust. With the unemployment rate dropping and inflation lingering above the target, the Federal Reserve’s policy meeting assumes even more significance. Then again, it’s worth seeing how the cryptocurrency markets, including BTC, would respond to whatever decision they make.
Source: Coindesk
