Bitcoin slides towards $75.000 after surprisingly strong jobs report: is another rate hike on the way?

Bitcoin lost ground again on Friday after unexpectedly strong US labour market data fuelled expectations that the Federal Reserve may raise interest rates further.

Resilient

The US added 165,000 jobs in October, following an upwardly revised increase of 60,000 in September. Economists had expected just 59,000 new jobs and unemployment to remain stable at 4.2%.

The figures suggest the US economy remains remarkably resilient despite high interest rates. That is not necessarily good news for investors. A strong labour market gives the Federal Reserve more room to keep rates high or even raise them again to bring inflation under control.

As a result, the debate is shifting increasingly towards a possible rate increase in December.

Low point

Bitcoin reacted negatively and fell 0.3% to around $75.500 after the figures were published. That leaves the largest cryptocurrency dangerously close to the seven-week low of $75.131 reached earlier overnight.

The decline added to the unease already weighing on financial markets. Technology stocks in particular came under pressure. Investors fear that the Democratic victory in the US midterm elections could lead to a slowdown in investment in artificial intelligence.

For Bitcoin, this creates a difficult cocktail. Higher rates make risky investments relatively less attractive, while weakness in technology stocks puts further pressure on overall risk sentiment.

The $75.000 threshold is therefore becoming an important level to watch. If Bitcoin falls convincingly below it, selling pressure could increase further. A recovery, by contrast, would show that crypto investors are still willing to buy the dip for now.