Bitcoin Falls Below $70k After Extremely Weak US Jobs Report

Bitcoin fell below the $70,000 margin this Friday after news arose of an extremely weak jobs report by the U.S. Bureau of Labor Statistics. The world's largest cryptocurrency started the day trading at $70,090.

Bitcoin dropped below the $70,000 threshold on Friday after news of a dismal U.S. jobs report.

The world’s biggest cryptocurrency began the day’s trading session at $70,090. Things appeared promising for investors as BTC rose by 1.92% within the first couple of hours, reaching $71,441.

However, a couple of hours later, Bitcoin slipped by 3.6%, reaching a daily low of $68,823. According to CoinMarketCap data, the coin is currently trading at $69,218 – still falling short of the $70K zone by about $800.

Disastrous Jobs Report

The Labor Department unveiled the figures for new U.S. jobs created in October on Friday. Anticipations in the market were for about 100,000 new positions during that period. Nevertheless, this month’s report showed a completely different picture.

The United States created only 12,000 jobs in October, marking the lowest level since December 2020 during the peak of the COVID pandemic. This minuscule number also contrasts sharply with the 223,000 new jobs created in September 2024.

After this disastrous result, fears of a recession are already rearing their heads. It could even prompt the Federal Reserve to reconsider its interest rate cutting strategy, which was adopted in the second half of this year.

However, there is a more logical explanation for America’s failure to maintain its job creation rate in October. The country was hit by not one, but two major hurricanes that left millions of Americans without electricity or even homes.

Moreover, October saw a large strike by Boeing Union workers in Seattle over wages and working conditions. Boeing’s strike alone led to a decrease of 46,000 jobs in the manufacturing sector.

The Federal Reserve will reconvene on November 7th to announce the new (or unchanged) U.S. interest rates. Only then will we be able to gauge whether the government views October’s jobs report as a warning sign – or merely a one-off event caused by external factors.

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