Bitcoin Falls Below $77,000 After Rising Above $86,000 in October
Key Facts
Bitcoin fell below $77,000 on October 30, after trading above $86,000 earlier in the month, according to an Associated Press report on Wall Street's decline. That places the cryptocurrency in the context of a broader downturn during October, but does not establish that strong U.S. jobs data caused the drop. No stronger-than-expected jobs report was released on November 2 that could be linked to the move. The previous U.S. jobs report showed an increase of 29,000 jobs in September, while the unemployment rate held at 4.2%. The Bureau of Labor Statistics said both figures “changed little” during the month.
September data show a slowdown in the pace of hiring compared with the average of previous months, with monthly job gains averaging 45,000 over the 12 months ended in September. The combined July and August estimate was also revised down by 60,000 jobs from previously reported figures. These revisions put September's reading in the context of a slower labor market than initial estimates for previous months had suggested. The August report showed an increase of 162,000 jobs, exceeding market expectations of 56,000. After that report was released on September 4, Bitcoin fell about 2% to below $80,000, according to CoinDesk.
In a decision separate from the currency's moves, the Federal Reserve on October 28 kept its target interest rate range at 3.75% to 4%. The decision was approved by a 10-to-2 vote, with the two dissenting members favoring a quarter-percentage-point rate increase. The central bank said “job gains have remained in line with the growth in the labor force, and the unemployment rate has changed little.” The decision provides an official assessment of the labor market and the current monetary policy stance, but does not establish that the rate decision or employment data caused Bitcoin's decline on October 30. The committee is scheduled to hold its next meeting on December 8 and 9, with the press conference set for December 9.
Attention is first turning to the September Job Openings and Labor Turnover Survey, scheduled for release on November 3 at 10 a.m. Eastern time. The latest reading available before the survey was released showed 7,079,000 job openings in August, with a job openings rate of 4.3%. The new reading follows the September report, which recorded an increase of 29,000 jobs and unemployment of 4.2%. The Bureau of Labor Statistics has scheduled its October Employment Situation report for release on November 6. These releases will provide more recent labor market data ahead of the Fed's next meeting in December.