September U.S. Jobs Numbers Push Crypto Prices Higher

Wall Street liked what it saw in the U.S. Bureau of Labor Statistics's September employment report, and so did crypto investors.

What’s the Scoop?

• Resilient Labor Market: Headline U.S. employment statistics for September came in resoundingly strong this morning; the Bureau of Labor Statistics reported that 254k payrolls were gained last month, nearly doubling economist expectations for 140k jobs gained in the biggest increase since March 2024. The unemployment rate was reported to have declined by 0.1% for the second month in a row, meanwhile, payrolls in the two months prior were revised higher by 72k jobs.
• Questioning Cuts: While U.S. Treasury interest rates increased this morning and markets are now largely rejecting the possibility of a 50 basis point cut at the Fed’s November meeting, the CME’s FedWatch tool continues to support a series of successive rate cuts during the remainder of 2024 and throughout the first half of 2025.

Bankless Take:

Unlike crypto prices, which have rallied since 2023 after the most aggressive part of the global interest rate hiking cycle came to a close, economic data has been much more mixed. Should the labor market finally be in remission as suggested by two months of positive employment data, inflation is unlikely to moderate significantly further. In this scenario, the “neutral” rate is likely close at hand, requiring the market to reconsider its expectations for aggressive rate cutting.