As tensions between Iran and Israel weigh heavily on the global market, Bitcoin briefly dipped below the $60,000 mark. While analysts warn that this decline might continue, all eyes were on the U.S. non-farm payroll data released today, which plays a crucial role in shaping the Federal Reserve’s interest rate decisions.
Non-Farm Payroll Data and Market Expectations
The non-farm payroll data, released on the first Friday of each month, is a key economic indicator that investors and analysts closely monitor. The data provides insight into the overall health of the economy and its impact on the broader financial market, including Bitcoin.
The numbers were as follows:
- Non-farm payrolls: 254k (vs. 147k expected, 142k previous)
- Unemployment rate: 4.1% (vs. 4.2% expected, 4.2% previous)
Bitcoin’s Immediate Reaction
Following the release of the data, Bitcoin initially remained under pressure. The better-than-expected figures might dampen the prospects for further interest rate cuts, which the crypto market has been closely watching. Investors remain cautious, awaiting further signals from the Federal Reserve.
What Did Jerome Powell Say?
Earlier this week, Federal Reserve Chairman Jerome Powell addressed the National Association for Business Economics (NABE) conference, reiterating the Fed’s commitment to data-driven decisions. Powell also hinted that if the economy continues to perform as expected, the Fed might introduce two additional interest rate cuts, totaling 50 basis points, by the end of the year.
While Powell’s comments provided some optimism, Bitcoin’s near-term performance will likely depend on the Fed’s next move, and whether the economic data supports a dovish shift in policy.
