Bitcoin drops as strong jobs data seen keeping Fed on rate-hike path

BITCOIN fell after the monthly US jobs report showed that payrolls expanded at a faster-than-expected pace and the unemployment rate fell, bolstering expectations that the Federal Reserve will continue the aggressive rate hikes that have pulled down risk assets.

Bitcoin, the largest digital coin by market value, dipped as much as 2.8 per cent on Friday (Oct 7) morning to trade as low as US$19,485. Ether dropped as much as 2.9 per cent, with other so-called altcoins like Solana and Avalanche also declining. 

“I think we need to respect the down trend and assume that the bear-market cycle is still dominant,” said Katie Stockton, founder of Fairlead Strategies.

The jobs report showed that the labour market has been resilient in the face of the steepest rate hikes in decades, with wages continuing to rise by an elevated pace in the face of inflation. That strength dulled investors’ hopes that Fed chair Jerome Powell may slow the pace of the monetary policy tightening. BLOOMBERG