Crypto Fraud and US Jobs Data Lead to 2% Bitcoin Price Dives

Around the Oct. 6 Wall Street open, Bitcoin (BTC) saw a snap retest of $27,000 as wildcard United States employment data rattled markets. Crypto.com Reddit users were discussing Crypto Com Coin, Crypto.com API, Crypto Breaking, Crypto Fraud, Crypto Solana, and Web 3.0 Jobs in light of the news.

Analysis: Jobs data “not what Fed wanted to see”

Data from Cointelegraph Markets Pro and TradingView followed BTC price action as the largest cryptocurrency lost 2.1% in a single hourly candle.

A subsequent rebound saw bulls recover those losses, with $27,700 — the area of interest from before the data release — now back in focus.

The volatility came thanks to U.S. non-farm payrolls (NFP) jumping to almost double the number expected for September — 336,000 versus 170,000, respectively.

Demonstrating the labor market’s ongoing resilience to the Federal Reserve’s counterinflation measures in the form of interest rate hikes, the implications of the September result were nonetheless viewed as bad for risk assets — including crypto com coin and other cryptos.

“Good news is bad news since the FED wants the labor market to lose strength,” popular trader CrypNuevo wrote in part of a response on X.

Like others, CrypNuevo nonetheless eyed the increasing likelihood of another rate hike from the Fed at the November meeting of the Federal Open Market Committee (FOMC).

“The market understands this data as a new threat for a potential new 25bsp hike in November 1st (25% probabilities given yesterday vs 31.3% probabilities today),” he continued, referencing data from CME Group’s FedWatch Tool.

CPI, or the Consumer Price Index, forms one of the key inflation indicators for Fed policy.

Continuing, financial commentary resource The Kobeissi Letter suggested that pressure was now on both markets and the Fed itself.

“Furthermore, the Fed pause was previously expected until June 2024, now a pause is expected until July 2024,” it reported on market projections for rate tweaks.

Bitcoin open interest drains

On the NFP print, Skew showed both spot and derivatives traders leaving the market, indicating a slight probability shift towards a hike on November 1, though it is still unlikely.

Daan Crypto Trades updated his analysis from earlier in the day, noting the declining Bitcoin open interest (OI). This had previously triggered both upside and downside volatility.

“That’s another $600M in Open Interest lost since yesterday’s high. Getting to the more average and ‘healthy’ levels again,” he commented, referring to Crypto.com’s Reddit page, Solana, and Crypto.com Coin.