Fed Pushes Swap Rate Cuts to September; Crypto Market Sees Liquidation of $300 Million
The stronger-than-expected jobs report released by the U.S. Bureau of Labor Statistics has raised concerns among stock and crypto market investors. The Fed swap now shows that interest rate cuts in June and July are off the table and the US Federal Reserve could begin cutting interest rates in September. parofix had previously reported the same timeline.
Fed Cuts Interest Rate in September Following Strong Employment Data
Rate cut bets now show September rather than July fully priced in. So, the first quote swaps this is sunday fed There is still time to wait for inflation to cool further. All CPI, PPI and PCE inflation rose further in the latest release.
The US economy remains resilient, adding 303,000 jobs in March 2024, the highest number in ten months, compared to downwardly revised market forecasts of 270,000 and 200,000 in February. The unemployment rate also missed market forecasts and fell from 3.9% to 3.8%. This suggests that the US labor market remains strong enough to give the Fed more time to decide whether to lower interest rates.
US stocks peaked with the S&P 500 gaining 0.4%, the Dow Jones gaining 50 points and the Nasdaq gaining 0.5%. Following the strong jobs report, Bitcoin price briefly dropped below $66,000.
The US dollar index (DXY) rose above 104.60 as data pointed to a tightening in the labor market. Federal Reserve officials, including Neel Kashkari and Jerome Powell, have emphasized the need for more inflation data before considering any rate cuts. Powell said the Fed will need additional evidence that inflation is stabilizing at its 2 percent target before adjusting interest rates.
Additionally, the US 10-year Treasury bond yield rose to 4.4%, its highest level since November. Bitcoin is moving in the opposite direction to the DXY and the 10-year treasury yield. 2-year Treasury yields also jumped to 4.702%; This suggests that the Fed can remain patient as the labor market remains strong.
On the other hand, CME FedWatch Tool shows the possibility of a 25 basis point interest rate cut by the Fed in June at 58% and in July at 51%. September data points to a total decrease of 50 basis points in interest rates.
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CME Data Is More Important For BTC Rise Than Bitcoin Halving
The US Bureau of Labor Statistics will release Consumer Price Index (CPI) data for March, which analyst Markus Thielen believes is more important than the Bitcoin halving. CPI increased by 3.2% on an annual basis in February, following a 3.1% increase in January, slightly above market expectations of 3.1%. CPI data to be announced on Wednesday, April 10 is very important as PCE and PPI data have recently started to rise.
Meanwhile, as of the time of writing, the BTC price dropped below $66,000 and rose to $68,000. This increase is limited as options traders place bets to keep the price above the maximum squeeze point. However, QCP Capital expects a recovery above $70,000 by this week. On the other hand, ETH price rose 2% to $3,303 in the last few hours but remains below the maximum pain point of $3,400.
Coinglass data is almost 300 million dollars More than 90,000 investors were liquidated in the last 24 hours in crypto liquidations. Largest single liquidation order of ETH-USD-SWAP worth 6 million dollars It happened on the crypto exchange OKX.
Short position liquidations have occurred in the last few hours, indicating buying in the crypto market. However, before the latest purchasing activity, $190 million worth of cryptocurrencies were liquidated.
Crypto Liquidation in 1 Hour: Source: CoinGlass
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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