Bitcoin Price Gains, Stocks Market Falls On US Jobs Data Ahead Fed Rate Hike

    According to the U.S. Bureau of Labor Statistics jobs data for March, the number of job openings in the U.S. fell by 9.6 million in March against the market expectations of 9.775 million. The job opening has fallen to the lowest level since April 2021, indicating a cooling labor market amid higher interest rates. Bitcoin price rises after lower below the $28,000 level, continuing to show volatility. The BTC price currently trades under pressure ahead of the U.S. Federal Reserve interest rate decision.

    US Jobs Openings Fell Ahead of Fed Meeting

    The Job Openings and Labor Turnover Summary (JOLTS) report by the U.S. Bureau of Labor Statistics on May 2 revealed a decline in job openings by 384,000 to 9.6 million in March 2023. The job opening has decreased 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 U.S. have increased to 1.8 million amid continued layoffs majorly in technology and banking firms.

    Both JOLTs job opening and US factory orders MoM figures come in lower than expected, causing the U.S. dollar index (DXY) to jump higher to 102.40 and then fell. As a result, the U.S. stock market fell over 1% as investors remain cautious about opening new positions ahead of the Fed monetary policy meeting. The Fed is expected to increase interest rates by another 25 bps.

    Also Read: Bitcoin Price Breaks Key Level, Risks Falling To $26K Ahead US Fed Rate Hike?

    Crypto Market Stands Still

    Crypto market to remain 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 breaking apart.

    Bitcoin price has increased by 2% to $28,602 after the JOLTS data. However, the trading volume still remains lower. Meanwhile, Ethereum price is trading near $1,850, up nearly 1% after the report.

    Also Read: PayPal Announces Crypto Insurance To Protect Investors From FTX-Like Crisis

    Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

    The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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