The most recent jobs report showed some surprisingly slowing numbers. While that may owe to some month-specific events, including hurricanes, it follows a recent downward trend in jobs numbers. Those factors may be clouding the overall picture surrounding a potential soft landing. Rate cuts that hit in September upped bullishness, to the benefit of bitcoin. Indeed, bitcoin’s price rose from the start of September to its close. Now sitting at a yearly high, what do these jobs numbers, mean for the economy, and therein, bitcoin?
See more: Cryptocurrencies: Bitcoin Climbs Above $70K
Back in August, the Bureau of Labor statistics revised the March 2023 to March 2024 jobs data down by more than 800,000. While those numbers will be revised yet again early next year with final data, it calls the economy into question. Many market watchers had anticipated an economic slowdown following rapid rate hikes. Since then, markets have gotten rate cuts and steady growth, instead.
Jobs, Jobs, and Bitcoin
If those numbers bely deeper weakness, that could put some bitcoin investing options into question. Bitcoin often moves in tandem with areas like tech. Hidden weakness, perhaps evidenced by recent disappointment in names like Microsoft (MSFT), could harm tech names, and, in turn, certain digital assets and related strategies.
Despite those fears, however, the overall economy appears to remain robust. Repeated revisions to jobs numbers seems to be a lonely counterpoint to other, more positive data points. Consumer spending hasn’t just remained healthy but has actually accelerated over the prior quarter. Consumer confidence, too, has grown.
While an AI deflation could harm tech firms in the future, the overall picture for tech remains positive. Bitcoin looks set to close out 2024 with a successful year in terms of price. Further rate cuts could benefit tech, too, while a diversification in smaller tech names outside the big names like MSFT could provide further optimism for Bitcoin.
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