Bitcoin Smashes $96K as Traders Brace for Fed’s Next Move

BTC rockets past $96,000—just as Wall Street holds its breath for Jerome Powell’s latest sermon on interest rates.

Why it matters: Crypto’s proving (again) it dances to its own beat—while traditional markets wait for central bank hand-holding.

The kicker: Watch those ‘inflation-fighting’ rate cuts vanish faster than a meme coin rug pull if Powell gets cold feet.

U.S. Economic Data Released

The previous unemployment rate data and forecast stood at 4.2%, while non-farm employment was expected to see a decline, with the new figure anticipated at 138,000 compared to the earlier month’s 228,000. Average earnings were forecasted to rise annually by just 0.1%, pegged at 3.9%. For the Fed to adopt a tighter monetary stance, more pronounced weakening in employment and stagnant wage growth are deemed essential.

The released data showed:

• Non-Farm Employment: Reported 177K, Previous 228K
• Average Hourly Earnings: Reported 3.8%, Previous 3.9%
• Unemployment Rate: Reported 4.2% (Consistent with Previous Data)

Crypto Market Response

Following the data release, Bitcoin$96,903 reclaimed the $97,000 level. Although non-farm employment exceeded expectations, it remained lower than the preceding month. The stagnant average hourly earnings are pivotal for potential monetary easing. The stability in unemployment rate suggests a still-strong labor market.

These figures might not compel the Fed to adopt a significantly dovish stance during Wednesday’s meeting, which in turn may not trigger a massive surge in the crypto market. Observers are keenly watching for any unexpected policy shifts or statements that could dramatically influence market dynamics.

As investors digest the intricacies of the economic indicators, the broader crypto market remains poised to react to subsequent developments. The interplay between macroeconomic signals and crypto valuations continues to fascinate stakeholders in this evolutionary financial landscape.

The immediate future holds the potential for significant shifts, contingent on the Fed’s perspective on the current status of employment and wage growth. With prevailing uncertainties, the market’s directional momentum remains elusive, shaped significantly by how policy directions unfold in the imminent meeting.