[Bitcoin Now] Rising Despite US Employment Surge... Growing Caution on Interest Rate Hikes

Image source=Reuters·Yonhap News

Although US employment in September exceeded expectations, cautious views on the Federal Reserve's (Fed) interest rate hikes within the year have strengthened, leading to a slight rise in Bitcoin prices.

According to CoinMarketCap, a global virtual asset market tracking site, as of 1:35 PM on the 8th, Bitcoin was priced at $28,003 (approximately 37.78 million KRW), up 0.24% from the previous day.

The US Department of Labor reported that nonfarm payrolls increased by 336,000 in September, significantly surpassing the expert forecast of 170,000. The September unemployment rate remained at 3.8%, unchanged from the previous month and higher than the market expectation of 3.7%. However, hourly wages rose by 0.2% from the previous month and 4.2% compared to the same period last year, falling short of the market's expected increases of 0.3% and 4.3%, respectively.

Due to these indicators, US Treasury yields surged sharply but later stabilized. Analysts attribute this to bargain buying following an excessive drop and the strengthened cautious stance on the Fed's interest rate hikes within the year despite the strong employment data. Goldman Sachs maintained its outlook that the rate hikes are likely over despite the robust employment figures. Capital Economics also argued that the rise in long-term yields has significantly tightened financial conditions, indicating that the Fed's rate hikes have ended.

The US stock market also closed higher. On the 6th (local time), the Dow Jones Industrial Average closed at 33,407.58, up 288.01 points (0.87%) from the previous session. The Standard & Poor's (S&P) 500 index ended at 4,308.50, rising 50.31 points (1.18%), and the Nasdaq index closed at 13,431.34, up 211.51 points (1.60%).

Investor sentiment in virtual assets remained neutral. According to data from Alternative, a virtual asset data provider, the Fear & Greed Index, which measures investment sentiment, rose by 1 point from the previous day to 50 points (neutral). Compared to 48 points (neutral) a week ago, it increased by 2 points. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating strong optimism.