US Labor Market Posts Strong Data—What It Means For Bitcoin

Economist and trader Alex Krüger expressed optimism about the U.S. job market and its trickledown effect on the cryptocurrency market and Bitcoin BTC/USD prices.

What Happened: Krüger stated on social media, “Extremely strong payrolls. U.S. job markets screaming "no recession anywhere in sight." He updated his Bitcoin price forecast to $65,000 to $68,000 into election night from his earlier prediction of $62,000 to $65,000, expecting it to be "pulled up by equities."

He believes that unless a significant event occurs in the Middle East, U.S. equities are likely to make new all-time highs soon, which could in turn boost Bitcoin prices.

"The main risk is the Middle East, where I have no edge at the moment. BTC is particularly sensitive to war in the Middle East," the trader noted.

Another crypto trader, Daan Crypto Trades, thinks that a strong economy and job market makes for “a very interesting Q4.”

Also Read: How To Successfully Trade Bitcoin’s ‘Bullish’ Q4: ‘Think In Terms Of Probabilities,’ Trader Says

Why It Matters: Krüger’s comments came in response to the recent September jobs report that exceeded expectations. The report reflected an increase in U.S. payrolls by 254,000 and a surprising dip in the unemployment rate to 4.1%. Wage growth also surpassed predictions, rising 0.4% month-over-month and 4% year-over-year.

The optimistic data created a debate among economists if Federal Reserve would cut interest rates further or not. The consensus now leans towards a more gradual approach to rate cuts, as the labor market's resilience weakens the case for aggressive monetary easing.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• Bitcoin Rebounds Above $61,500 And $80K Is More Likely Than $40K, Says Top Technical Analyst

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