Bitcoin Successfully Passes Nonfarm Payrolls Test

As of this writing, Bitcoin has gained 4.42% and is trading at 61,739 following the release of the NFP data, while the US Dollar Index is declining and has dropped 0.26% to 105.074. In light of this, the US jobs report serves as a crucial event for markets, putting further bullish wagers on Fed rate cuts to the test.

Bitcoin and other risky assets may benefit from the dollar’s ongoing decline. The one factor influencing global liquidity circumstances is the cryptocurrency’s tendency to move inversely to the US dollar.

In anticipation of a US jobs report that has already revealed the unemployment rate has stayed below 4% for the 27th consecutive month, Bitcoin remained stable while the dollar index licked its wounds. With the dollar index declining and Bitcoin trading little altered, the post-Fed bearish momentum persisted. According to the US NFP data, employment growth slowed in March and reached a low of 175,000 new positions in April.

Since the Fed meeting on Wednesday, the sell-off in bitcoin prices has paused, allowing for a slight price rebound. Additional increases depend, at least in part, on the US nonfarm payroll statistics.

The unemployment rate increased slightly from 3.8, previous to 3.9. The dollar index was lower and bitcoin was exhibiting signs of stability prior to the data. By market value, the top cryptocurrency was trading close to $59,000. Rekindled hopes for a November interest rate drop or liquidity ease are evident in Fed fund futures.