US labor market data was mixed, with the unemployment rate climbing to a more than four-year high, and US stocks generally weak. The crypto market recovered slightly, with the overall market capitalization rising 1.51% to $2.98 trillion. However, the Fear & Greed Index remained low at 22, and the Altcoin seasonal index fell even further to 18, entering its lowest range. Bitcoin (BTC) gradually recovered to 87K after falling to 85K on Monday, while Ethereum (ETH) remained below $3,000, with the market awaiting the Bank of Japan's (BOJ) interest rate decision on Friday.
Labor market data was mixed, with the unemployment rate climbing to its highest level in more than four years.
Data from the U.S. Bureau of Labor Statistics shows that nonfarm payrolls increased by 64,000 in November, reversing a loss of 105,000 in October. However, the unemployment rate climbed to 4.6%, its highest level in more than four years, and many unemployed Americans are struggling to find new jobs.
Retail sales remained largely unchanged in October, with overall sales growth hampered by declining spending at car dealerships, despite strong performance across several categories.
Traders have not increased their bets on a near-term rate cut by the Federal Reserve, which may wait for more data before making further assessments due to recent data delays. According to the CME FedWatch Index, traders generally believe the Fed will keep rates on hold in the near term, but there seems to be an expectation of two more rate cuts next year, one more than the previously released dot plot.
Bitcoin gradually rebounded to 87K, while Altcoin remained sluggish.
The crypto market saw a slight recovery, with the overall market capitalization rising 1.51% to $2.98 trillion. The Fear & Greed Index remained low at 22, while the Altcoin seasonal index fell further to 18, entering its most depressed range.
Bitcoin rebounded slowly to 87K after falling to 85K on Monday, while Ethereum (ETH) remained below $3,000, and ETFs continued to see net outflows on December 15.
The Bank of Japan is scheduled to hold a policy meeting on December 18-19. The market widely expects the BOJ to raise interest rates by 25 basis points to 0.75%, bringing the benchmark rate to a 20-year high. Coupled with the US rate cut of 25 basis points this month, the interest rate differential between the US and Japan has narrowed, potentially triggering the unwinding of yen carry trades and possibly impacting high-risk assets like Bitcoin first. Furthermore, with the year-end holidays approaching in Europe and the US, liquidity is low, and the market appears more conservative and cautious.
This article, "Bitcoin Rises to 87K, Market Awaits Bank of Japan Interest Rate Decision on Friday," first appeared on ABMedia ABMedia .
