Bitcoin and other altcoins held steady after the Bureau of Labor Statistics published encouraging September nonfarm payrolls data.
US nonfarm payrolls rebound
Bitcoin (BTC) rose slightly to $62,500 while Solana (SOL) jumped by 3% to $140. FTX Token (FTT) was the best top-100 cryptocurrency as it jumped by 20%. It has risen by over 80% from its lowest level this month.
Shiba Inu (SHIB), the second-biggest meme coin in the industry, was the second best-performing currency, rising by 10%. The other top performers were AAVE (AAVE), Beam (BEAM) and Celestia (TIA).
According to the BLS, the American economy added 254,000 jobs in September, higher than the median estimate of 147,000. It also revised its estimate of August’s jobs report upwards to 159,000.
The unemployment rate retreated from 4.2% to 4.1% while wage growth rose from 3.9% to 4.0% in September.
These numbers came at a time when there are significant inflation fears as the crisis in the Middle East escalated, pushing crude oil prices higher. Brent crude has jumped to $78 while the West Texas Intermediate rose to $75.
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Therefore, there is a risk that the Federal Reserve will not be as aggressive in cutting interest rates as was widely expected. In a statement on Monday, Sep. 30, Jerome Powell, the Fed Chair, noted that the Fed would be conservative when cutting interest rates.
A hawkish turn by the Federal Reserve would be moderately bearish on risk assets like stocks and cryptocurrencies.
Another day, and yet higher oil prices.IF this continues and results in durably higher prices, a big if, it will question the widespread view in markets that "inflation is dead" and that the Fed can be a single mandate central bank, focusing just on the "maximum employment"… pic.twitter.com/1SqxsiJZwF
— Mohamed A. El-Erian (@elerianm) October 4, 2024
Traders are optimistic on Bitcoin and altcoins
On the positive side, most crypto investors are upbeat on Bitcoin and altcoin performance in October.
Historically, October and November have been the best two months for Bitcoin, according to CoinGlass.
In a note, a crypto analyst noted that the best Octobers in the past few years started with some struggle.
Every man, their dog, that dog's cousin, the cousin of the first dog's owner, then that owner's Anon CT account is bearish on $BTC right now and wider cryptocurrencies it seems.Ignore the noise. The last two true bull markets for BITCOIN have been born in Uptober, but not… pic.twitter.com/4ygLYq0kQy
— Jagoilio (@mitchell_nixon) October 4, 2024
The other potential catalyst for Bitcoin and other tokens will be the upcoming US election in November. Historically, top assets do well after the election as investors embrace the new normal of the next administration.
Meanwhile, most betters in a Polymarket poll with $147,000 believe that Bitcoin will rise to $65,500 this month, 7% above the current price. Many others see it rising to $70,000 this month.
A Bitcoin comeback would lead to more gains by most altcoins like Solana, Ethereum, and Solana. It would also spur more gains in the meme coin industry.
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