• The U.S. Bureau of Labor Statistics (BLS) recently reported that 517,000 new jobs were created in January, pushing the unemployment rate to 3.4%.
• Following the news, Bitcoin fell to $23,370 shortly afterward.
• The chief economist at Fitch Ratings believes the Fed must now work to tame inflation and may be required to hike interest rates multiple times despite initially expecting only one hike before these NFP numbers.
U.S Job Figures Released
The U.S. Bureau of Labor Statistics reported that 517,000 new jobs were created in January, pushing the unemployment rate to 3.4%. The figure surpassed the 185,000 anticipated by Wall Street economists and was higher than the 2022 monthly average of 401,000 jobs. These gains were led by employment growth in health care, professional and business services, leisure and hospitality, and government sectors.
Bitcoin Price Falls
Following the release of this news, Bitcoin price fell to $23,370 shortly afterwords as economic times remain a major concern despite this positive job report from America’s labor market.
Average Hourly Earnings
The average hourly earnings parameter fell to 4.4% on a year-over-year comparison lower than December’s 4.6%. This indicates that wage growth is slowing down despite rising employment figures across various industries in America.
Fed Reacts To Data
The chief economist at Fitch Ratings said he now anticipates two or more rate hikes due to these positive NFP numbers after previously expecting only one hike prior to this data being released.. He added that even though markets had shown some confidence with fighting against the Fed earlier this week, today’s NFP numbers have introduced doubts into investors‘ minds over whether or not they can trust their investments in both traditional and crypto assets as they had been rallying before this news was announced..
In conclusion it remains clear that while employment figures have increased across various industries in America during January 2021 it has not translated into improved wages for workers as hourly earnings have fallen since December 2022’s figures with further uncertainty ahead for both traditional and cryptocurrency markets following these latest developments from US job market data