Bitcoin News: The January US jobs report indicated the inherent strength of the labor market amid concerns of high inflation in the country. This could potentially have a significant bearing in the Federal Reserve‘s interest rate hike decisions in the coming months. However, the nominal wage growth declined to 4.4 percent, the lowest yearly rate since August 2021. Meanwhile, the Bitcoin (BTC) price showed an immediate negative reaction to the robust jobs data.
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The robust labor market scenario could well be a deterrent to the potential ‘Fed pivot’ sometime later in 2023. Growth in jobs numbers would mean the Fed’s continued efforts to control inflation to be able to achieve the 2% target. The S&P 500 Index, which largely has a positive correlation with the Bitcoin price, was at point down by around 1.50% in response to the jobs data.
Jobs Data Above Market expectations
In reaction to the January jobs report, the U.S. Dollar Index (DXY) rose significantly on Friday. As of writing, DXY stands at 102.59, up 0.83%. Owing to the Dollar’s inverse relation to Bitcoin, the BTC price decline after the data release. However, Bitcoin price swiftly recovered from the loss, to the $23,600 range. As of writing, BTC price stands at $23,403, down by 1.637% in the last 24 hours, according to CoinGape price tracker. In January, there were as many as 517,000 jobs added to the economy, which was above expectations.
According to Bureau of Labor Statistics report for January,
“According to the US jobs report, the economy added 517,000 jobs in January, for an average monthly gain of 356,000 over the past three months. The number of jobs added in January came in well above market expectations. Employment growth in November and December was revised up by a combined 71,000 jobs.”
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