April Jobs Miss at 175K vs. 243K Forecast, BTC Hits $60K

Key Takeaway

• U.S. job additions in April at 175,000 missed forecasts of 243,000; unemployment rate slightly up to 3.9%.
• Bitcoin price surged above $60K following the jobs report, indicating a potential change in trend despite recent declines.
• U.S. stock futures and gold prices rose, while the dollar index and 10-year Treasury yield fell post-report.

Job Growth Misses Expectations

The U.S. economy added 175,000 jobs in April, falling short of the anticipated 243,000 jobs based on economist forecasts. This figure also represents a significant decrease from March's revised job addition of 315,000. The unemployment rate saw a slight increase to 3.9%, against the expected 3.8%, indicating a potential cooling in the labor market. This development comes in the wake of the Federal Reserve's indication that interest rates are poised to remain at a 23-year peak of 5.25-5.5% as it continues to tackle persistent inflation issues.

Bitcoin Reacts Positively to News

Following the release of the jobs report, Bitcoin's price experienced a surge, climbing more than 1% to $60,100. This reaction underscores the cryptocurrency's sensitivity to economic indicators and monetary policy expectations. The report's implications for slower economic growth and the potential for less aggressive interest rate hikes seem to have buoyed investor sentiment in the crypto market, marking a notable shift from Bitcoin's roughly 20% decline from its mid-March all-time high.

Traditional Markets and Monetary Policy

The jobs report has also had a noticeable impact on traditional financial markets and the broader economic outlook. U.S. stock index futures rose by more than 1%, and the 10-year Treasury yield dropped 11 basis points to 4.47%. Additionally, the dollar index fell by 0.8%, while gold prices increased by 0.8% to $2,329 per ounce. These movements reflect a recalibration of expectations around the Federal Reserve's monetary policy, with earlier predictions of multiple interest rate cuts in 2024 being pared down to potentially just one or two, according to the CME FedWatch Tool.

Management Quotes

• Jerome Powell, Fed Chair:

  "Powell poured cold water over the idea [of interest rate hikes], but continued strong job growth and perky inflation might force the Fed's hand at some point."