Bitcoin Stumbles as U.S. November Job Growth Surpasses Predictions

• Unexpected Job Growth Boosts U.S. Economy in November
• Bitcoin Takes a Slight Dip
• An Ongoing Rally for Bitcoin
• Average Hourly Earnings See an Increase

Unexpected Job Growth Boosts U.S. Economy in November

In a surprising turn of events, the U.S. economy experienced a significant boost with an addition of 199,000 jobs in November, surpassing the economists' prediction of 180,000. This is a notable increase from the 150,000 jobs created in October. The unemployment rate further defied expectations, declining to 3.7% against the forecast of a steady 3.9%.

Bitcoin Takes a Slight Dip

Following the Friday morning's announcement, Bitcoin$42,260 -0.64%'s price experienced a minor 0.5% decline to $43,500. In comparison, traditional markets saw a soaring interest rate, with the 10-year U.S. Treasury yield up by 8 basis points to 4.24%. Additionally, U.S. stock index futures turned lower, with the Nasdaq 100 falling by 0.7%.

An Ongoing Rally for Bitcoin

Despite this slight setback, Bitcoin has been making impressive strides, with a surging 60% rally since the start of October. This rally owes its success, in part, to the lower interest rates expected by investors, due to a potential shift towards a more relaxed monetary policy by the Fed. However, if this jobs report derails these lower rate predictions, the rally could experience a slight pause or even a modest reversal.

Average Hourly Earnings See an Increase

Digging deeper into the report, average hourly earnings displayed an upward trend, with a 0.4% rise as opposed to October's 0.2% and the projected 0.3%. On a year-over-year basis, average hourly earnings were higher by 4%, aligning with October's figures and the forecasts of economists.

Edited by Jonathan Stoker