America’s employers barely hired anyone in September. They added just 29,000 jobs, less than a third of the 90,000 economists expected. Markets cheered anyway.
Bad news for job seekers became good news for Bitcoin (BTC) and gold. Both jumped within minutes of the US jobs report. Traders betting against Bitcoin paid the price.
A US Jobs Report That Missed by 61,000
The Bureau of Labor Statistics (BLS), the government agency that counts American jobs, released the numbers at 8:30 a.m. ET on Friday.
The unemployment rate rose to 4.2%. Economists had expected 4.1%. In August, by contrast, employers added 162,000 jobs, according to the first estimate.
The BLS said hiring “changed little” in every major industry.
Why Bitcoin and Gold Rose on Weak Jobs Data
Gold climbed from about $4,178 an ounce to $4,227 in minutes, TradingView data shows. Bitcoin rose from about $86,450 to nearly $87,230.
Bitcoin last traded at $86,767, up 3.48% in a day, according to live Bitcoin price data.
It was the second time this week. On Wednesday, both assets jumped within minutes after a key US inflation measure cooled to 3.4%.
$27.5 Million in Bets Against Bitcoin Wiped Out
Many crypto traders borrow money to bet on prices. If the price moves the wrong way, the exchange closes the bet and the money is gone. That is called a liquidation.
In the past hour, $32.51 million of these bets were wiped out, CoinGlass data shows. About $27.53 million came from traders betting prices would fall.
Bitcoin alone made up $20.5 million of the losses.
What the Jobs Miss Means for the Fed in December
The Federal Reserve raised interest rates in September. Higher rates make savings and bonds more rewarding than gold or Bitcoin, which pay no interest.
J.P. Morgan still expects one more hike in December. Meanwhile, 10-year Treasury yields hit a 24-year high this week.
Now the Fed heads toward that December decision with a stalling job market added to the pile.
Source: BeInCrypto
