Bitcoin gains, stock falls on US jobs data ahead of Fed rate hike
According to the US Bureau of Labor Statistics jobs data for March, the number of vacancies in the US fell by 9.6 million in March against market expectations of 9.775 million. Job vacancies have fallen to their lowest level since April 2021, indicating a cooling labor market with higher interest rates. Bitcoin price is rising after lower below the $28,000 level, and continues to show volatility. The BTC price is currently trading under pressure ahead of the US Federal Reserve’s interest rate decision.
The number of vacancies in the US fell ahead of the Fed meeting
The Job Openings and Labor Turnover Summary (JOLTS) report from the US Bureau of Labor Statistics on May 2 revealed a decline in job openings by 384,000 to 9.6 million in March 2023. Job openings have fallen lower than the forecast of 9.74 million .
Meanwhile, the number of hires and total separations remained relatively stable at 6.1 million and 5.9 million respectively. Layoffs and discharges in the US have increased to 1.8 million due to continued layoffs, mainly in technology and banking firms.
Both JOLT’s job omoney and US factory orders MoM numbers come in lower than expected, causing the US dollar index (DXY) to jump higher to 102.40 and then fall. As a result, the US stock market fell over 1% when IInvestors remain cautious about opening new positions ahead of the Fed’s monetary policy meeting. The Fed is expected to raise interest rates by another 25 bps.
Also Read: Bitcoin Price Breach at Key Level, Risk Drops to $26,000 Ahead of US Fed Rate Hike?
The crypto market is at a standstill
The crypto market remains under pressure until Fed Chair Jerome Powell’s public hawkish and dovish stance. Bitcoin price has recently started to move in correlation with gold, with correlation with the US stock market in pieces.
Bitcoin price has increased by 2% to $28,602 after the JOLTS data. However, trading volume is still lower. Meanwhile, the Ethereum price is trading near $1,850, up nearly 1% following the report.
Also Read: PayPal Announces Crypto Insurance to Protect Investors from FTX-Like Crises
