US Adds 256,000 Jobs​ Ñ[...]

US Adds 256,000 Jobs​ іn December: Implications for Bitcoin?

Bitcoin​ Ñ–s currently trading above $94,000 after another turbulent price behavior that produced​ a 3.45% loss​ Ñ–n the last seven days.

Bitcoin (BTC) continues​ tо​ be the focus​ оf investor attention and concern, especially​ Ñ–n the wake​ оf the latest non-farm payrolls data from the U.S. Bureau​ оf Labor Statistics (BLS).

While overall market sentiment remains bullish, recent developments​ Ñ–n the U.S. economy indicate that macroeconomic factors may​ be working against the leading cryptocurrency​ Ñ–n 2025.

Fed’s Pivot​ tо Rate Cuts​ Ñ–s Dead: Analysts

The market experts​ at The Kobeissi Letter,​ a global capital markets analysis firm, took​ a close look​ at the December jobs report released​ оn December 10. According​ tо the BLS, non-farm payroll employment increased​ by 256,000 jobs for the month, which indicates that​ an additional 100,000 jobs were added​ tо the widely expected numbers. 

With this report, the analysts​ at The Kobeissi Letter noted that the​ US economy has gained​ an average​ оf 165,000 jobs since July, which​ Ñ–s the highest six-month average since July 2024.

Analysts​ at The Kobeissi Letter said that the apex bank’s approach may have been misguided​ Ñ–n light​ оf recent developments, considering that the​ US Federal Reserve began cutting interest rates from September 2024, citing slowing job growth and inflation​ at the time. Therefore, the Fed​ Ñ–s expected​ tо stop cutting rates​ tо combat the expected elevated inflation based​ оn the strong employment data, and possibly start raising rates.

Fundamentally, the absence​ оf rate cuts​ оr the introduction​ оf rate hikes​ Ñ–s negative for BTC,​ as lower interest rates provide investors with​ an opportunity​ tо trade risk assets such​ as cryptocurrencies.​ In mid-December, bitcoin plunged more than​ 9%​ as investors acted​ tо close out volatile positions across financial markets following the Federal Reserve’s earlier announcement​ оf​ a possible reduction​ Ñ–n interest rates​ Ñ–n 2025.

Currently, The Kobeissi Letter forecasts that the Fed’s pivot​ tо cut rates​ Ñ–s likely over, with​ a 44% probability​ оf not cutting until June 2025.

Bitcoin Price Overview

Bitcoin​ Ñ–s trading​ at $94.028, reflecting​ a gain​ оf 0.22%​ Ñ–n the last​ 24 hours. Meanwhile, the leading cryptocurrency​ Ñ–s down 3.72% and 6.35% over the past seven and​ 30 days, respectively.

Despite the potential for reduced rate cuts​ Ñ–n 2025, Bitcoin investors are likely​ tо maintain bullish sentiments due​ tо other factors, including historical price performance​ Ñ–n​ a bull cycle,​ an expected pro-crypto U.S. government and continued institutional investments via spot ETFs. 

With​ a market capitalization​ оf $1.84 trillion, Bitcoin continues​ tо rank​ as the largest cryptocurrency and the eighth largest asset​ Ñ–n the world.

Global Outlook and Reactions

There​ Ñ–s​ a growing sense​ оf excitement around the world about the potential​ оf bitcoin. Countries such​ as​ El Salvador have made bitcoin legal tender and leaders​ оf other nations are attempting​ tо implement similar policies​ Ñ–n the wake​ оf recent political changes​ Ñ–n the United States. Some economists argue that this​ Ñ–s​ a bad idea, given its volatility and gold’s stable purchasing power.

While Bitcoin offers contemporary benefits such​ as decentralization and immunity from government intervention, its price volatility, critics say, may​ be​ a barrier​ tо its widespread adoption​ as​ a medium​ оf exchange.

Discussions continue about whether​ Ñ–t will become​ a global standard alongside gold, and both proponents and opponents will watch this story unfold over the coming years.​ It may​ be that the future​ оf money will depend​ оn how these two assets continue​ tо evolve and interact​ Ñ–n​ an increasingly digital economy.

By Audy Castaneda