Bitcoin dropped below $75,000 as strong labor data fueled expectations for a December rate hike, even as the Nasdaq and S&P 500 rallied on discounted tech shares.
Bitcoin fell below $75,000 to levels last seen in mid-August, diverging from a rebound in US tech stocks. A strong October payrolls report of 165,000 jobs versus 65,000 expected pushed December hike odds from 66.9% to 76.8%, a liquidity headwind for crypto. A drop to $69,000 is possible if the $75,500 area fails to hold.
A much stronger-than-expected US jobs report (165,000 new jobs in October versus 65,000 expected) raised bets on a December rate hike from 66.9% to 76.8%, reducing liquidity inflows to crypto while stocks rebounded.
The analysis cited warns of a drop to as low as $69,000 if the area around $75,500 fails to hold.
The Nasdaq Composite traded up 1.2% as traders bought heavily discounted tech shares, rebounding even as Bitcoin hit multi-week lows. Individual tech names like SanDisk and Micron rose 6.3% each.
Tech stocks rebounded while Bitcoin diverged and hit multi-week lows; the Nasdaq was up 1.2% while BTC fell below $75,000.
October payrolls of 165,000 jobs far exceeded the 65,000 forecast, unemployment fell to 4.1% from 4.2% predicted, and September was revised up to 60,000. This strengthens the case for a 25 basis point hike in December, whose odds rose from 66.9% to 76.8%, supporting the dollar.
The much stronger-than-expected employment data increased the probability of a December Fed rate hike to 76.8%, which is supportive for the dollar.
The S&P 500 traded up 0.6% as US stock markets rebounded on the back of discounted tech shares, despite the strong jobs report raising rate-hike expectations.
The S&P 500 traded up 0.6%, rebounding alongside the Nasdaq despite the data pointing to a possible December rate hike.
Bitcoin fell below $75,000 to mid-August lows as a robust US jobs report triggered a divergence from rebounding tech stocks. October payrolls surged by 165,000, far exceeding the 65,000 forecast, which pushed the probability of a December Fed rate hike to 76.8%.
A much stronger-than-expected US jobs report raised bets on a December rate hike to 76.8%, reducing liquidity inflows to crypto assets.
Market analysts warn that if the $75,500 support level fails to hold, Bitcoin could face a further decline toward $69,000.