{"id":26342,"date":"2023-12-08T16:50:53","date_gmt":"2023-12-08T16:50:53","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/markets-rethink-fed-rate-cuts-as-bitcoin-circles-44k-on-us-jobs-data\/"},"modified":"2023-12-08T16:50:55","modified_gmt":"2023-12-08T16:50:55","slug":"markets-rethink-fed-rate-cuts-as-bitcoin-circles-44k-on-us-jobs-data","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/markets-rethink-fed-rate-cuts-as-bitcoin-circles-44k-on-us-jobs-data\/","title":{"rendered":"Markets rethink Fed rate cuts as Bitcoin circles $44K on US jobs data"},"content":{"rendered":"
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Bitcoin (BTC) tapped $44,000 after the Dec. 8 Wall Street open as United States employment data shrunk market bets on interest rate cuts.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Bitcoin holds firm as jobs data unsettles U.S. dollar<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView covered the latest BTC price action as risk assets reacted to the latest U.S. inflation cues.<\/p>\n

Nonfarm payrolls came in above expectations at 199,000 versus 190,000, while unemployment was lower than forecast at 3.7% versus 3.9%, per an official release from the U.S. Bureau of Labor Statistics.<\/p>\n

Both suggested that the full impact of Federal Reserve monetary tightening had yet to show itself, and while other data had already captured declining inflation, markets treated the labor figures nervously.<\/p>\n

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JUST IN: Interest rate futures shift from showing rate cuts beginning in March 2024 to May 2024 after jobs report.<\/p>\n

Prior to the November jobs report, markets saw a 60% chance of rate cuts beginning in March 2024.<\/p>\n

Odds of rate cuts beginning in January 2024 fell from 16% to 6%.\u2026 pic.twitter.com\/hFYFLVP5xv<\/a><\/p>\n

\u2014 The Kobeissi Letter (@KobeissiLetter) December 8, 2023<\/a><\/p><\/blockquote>\n

Data from CME Group\u2019s FedWatch Tool nonetheless put the odds of anything other than a rate change freeze continuing at next week\u2019s Fed meeting at practically zero.<\/p>\n

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Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n

The U.S. Dollar Index (DXY) saw particularly pronounced volatility around the data, briefly hitting its highest levels since Nov. 20 before erasing its gains to trade at 103.8 at the time of writing.<\/p>\n

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U.S. dollar index (DXY) 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Liquidity crowds BTC price amid consolidation<\/h2>\n

While gold was down 0.8%, Bitcoin managed to avoid a straight comedown despite the decreased belief in lower interest rates coming sooner.<\/p>\n

Related:\u00a0\u2018Early bull market\u2019 \u2014 Bitcoin price preps 1st ever weekly golden cross<\/em><\/strong><\/p>\n

The largest cryptocurrency stayed locked in a multi-day trading range as traders looked for signs of trend continuation.<\/p>\n

\u201cBitcoin still consolidating in an uptrend and holding strong after the recent move,\u201d popular analyst Matthew Hyland wrote<\/a> in part of an analysis on X (formerly Twitter).<\/p>\n

\u201cClear support around $43k now.\u201d<\/p><\/blockquote>\n

Fellow trader and analyst Daan Crypto Trades, meanwhile, noted significant areas of liquidity directly around the spot price.<\/p>\n

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#Bitcoin<\/a> Liquidation Map <\/p>\n

Has been building some thick clusters on both sides due to ranging in this same area for some time now.<\/p>\n

Most notably: $42.9K & $43.8K<\/p>\n

Keep an eye out for those levels. pic.twitter.com\/Vz6eYVVwy5<\/a><\/p>\n

\u2014 Daan Crypto Trades (@DaanCrypto) December 8, 2023<\/a><\/p><\/blockquote>\n

Ongoing attention focused on altcoins versus Bitcoin, with Ether (ETH) and Solana\u2019s SOL (SOL) taking the lead overnight amid renewed anticipation of a form of \u201calt season\u201d returning.<\/p>\n

\u201cBitcoin still consolidating around $43K, while Ethereum is taking more momentum,\u201d Micha\u00ebl van de Poppe, founder and CEO of MN Trading, told<\/a> X subscribers.<\/p>\n

\u201cThe bottom for ETH\/BTC is close or maybe in. Coming two months are going to be electric for altcoins further.\u201d<\/p><\/blockquote>\n

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ETH\/BTC 1-day chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n