Bitcoin rebounds by $63,000! U.S. job market cools, market expects rate cuts to begin in September

This site (120BtC.coM): After a two-day interest rate decision-making meeting, the U.S. Federal Reserve (Fed) announced yesterday (3) that it will continue to adjust the federal benchmark Interest rates remain unchanged at 5.25% to 5.5%, marking the sixth consecutive interest rate freeze.

While the decision results were in line with market expectations, Fed Chairman Jerome Powell also sent a dovish signal at the post-meeting press conference, bluntly stating that the Fed's next decision would not be to raise interest rates, which was a sign of the sluggish economy. A glimmer of light for the market: I think the next change in policy rates is unlikely to be a rate hike... I would say it's unlikely.

The U.S. job market is cooling

Not only that, the U.S. Bureau of Labor Statistics released the latest non-farm employment data last night. The data shows that the U.S. job market has slowed down compared to before:

• The number of new non-agricultural jobs in February was revised down from 270,000 to 236,000

• The number of new non-agricultural jobs in March was revised down from 30.3 Thousands of people were revised up to 315,000

• The revised data showed that the total number of new jobs in February and March decreased by 22,000 compared with before the revision.

• At the same time, the seasonally adjusted non-farm payroll employment in the United States in April was 175,000, compared with expectations of 243,000 and the previous value of 303,000.

The market expects interest rate cuts to begin in September

The cooling of the job market has revived market expectations for the Fed to cut interest rates this year. In anticipation of one interest rate cut, the U.S. interest rate futures market currently sets the number and magnitude of interest rate cuts by the Federal Reserve in 2024 as two and 25 basis points each time. The swap market has also advanced the time for the first interest rate cut to September from the previous November. moon.

In this regard, Richard Flynn, general manager of Charles Schwab, also said: The latest non-farm payrolls report shows that demand in the labor market is slowing. In recent months, it has become clear that the Fed is willing to move slowly in the rate-cutting cycle and does not want to see unexpected weakness in the economy. The reports we're seeing today could lead to a shift in that approach, with the collapse of the labor market potentially prompting the Fed to move from a stroll to a sprint on rate cuts.

Bitcoin surged 4.4%

Inspired by this news, Bitcoin quickly started to rise at 20:30 last night, rising from US$59,112 to US$63,333 in the Binance spot market. , although the price fell slightly at the time of writing and was reported at $62,850, it still achieved an increase of more than 3.9% in the past 24 hours.

Ethereum was also motivated by this and rose. At the time of writing, it was currently trading at $3,117, an increase of 4% in the past 24 hours.

The four major U.S. stock indexes rose together

It was not just cryptocurrencies that rose. According to Google Finance, the four major U.S. stock indexes also rose together last night:

• Dow Jones Industrial Average: 38,534.73 points, up 0.82% or 313.73

• S&P Index: 5,108.73 points, up 0.88% or 44.52

• NASDAQ: 16,122.81 points, up 1.78% or 283.02

• Philadelphia Semiconductor Index: 4,701.45 points, up 2.09% or 96.11

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