Bitcoin Price Volatile Amid Soft US Jobs Data and Fed Rate Cut Hopes – Where Could BTC Go Next?

The price of Bitcoin (BTC) saw significant fluctuations on Friday, briefly reaching $71,500 before dipping back to around $70,000. This volatility was fueled by soft US employment data, which raised expectations that the Federal Reserve may cut interest rates twice more this year.

US Jobs Data Sparks Rate Cut Speculation

The US economy added just 12,000 jobs in October, far below the projected 106,000. Furthermore, job growth estimates for August and September were revised down by 112,000, signaling a weakening labor market. While the unemployment rate held steady at 4.1%, the data indicates a cooling job market, which could support further Fed rate cuts as early as December.

This backdrop is seen as supportive for risk assets, including Bitcoin, which often performs well in a low-rate environment. The Fed is expected to proceed with its rate cut guidance, despite potential distortions in the jobs data from recent hurricane impacts.

Bitcoin’s Potential Path Forward

With the US labor market showing signs of softening, Bitcoin could see a medium- to long-term price boost. As lower interest rates generally benefit stocks and crypto, BTC is positioned for growth, though it may face near-term swings due to the impending US presidential election and broader economic signals.

Election Uncertainty Adds to Market Jitters

As the November election approaches, political uncertainty has also affected Bitcoin’s price dynamics. Former President Trump’s odds in betting markets have been declining due to recent controversies, including public missteps at rallies. Since Trump is considered more pro-crypto, dwindling confidence in his election chances could be prompting some profit-taking in Bitcoin.

A Trump victory could act as a bullish trigger for Bitcoin, while a win by Kamala Harris could lead to some selling pressure from Trump-supportive traders. However, analysts suggest Harris’s stance on crypto may be more neutral than the Biden administration’s, potentially providing some policy stability.

Bitcoin Outlook: End-of-Year Rally Possible

Despite current volatility, analysts are optimistic about Bitcoin’s performance in late 2024. With delayed effects from this year’s Bitcoin halving expected to take hold, many suggest that Bitcoin could be on track to reach $100,000 by year’s end, fueled by a favorable economic backdrop and the crypto market’s resilience.

In the meantime, traders should brace for potential price swings as political developments and rate cut expectations continue to shape Bitcoin’s near-term trajectory.