Economist and trader Alex Krüger expressed optimism about the U.S. job market and its trickledown effect on the cryptocurrency market and Bitcoin (CRYPTO: BTC) prices.
What Happened: Krüger stated on social media, “Extremely strong payrolls. U.S. job markets screaming "no recession anywhere in sight." He updated his Bitcoin price forecast to $65,000 to $68,000 into election night from his earlier prediction of $62,000 to $65,000, expecting it to be "pulled up by equities."
He believes that unless a significant event occurs in the Middle East, U.S. equities are likely to make new all-time highs soon, which could in turn boost Bitcoin prices.
"The main risk is the Middle East, where I have no edge at the moment. BTC is particularly sensitive to war in the Middle East," the trader noted.
Another crypto trader, Daan Crypto Trades, thinks that a strong economy and job market makes for “a very interesting Q4.”
Also Read: How To Successfully Trade Bitcoin’s ‘Bullish’ Q4: ‘Think In Terms Of Probabilities,’ Trader Says
Why It Matters: Krüger’s comments came in response to the recent September jobs report that exceeded expectations. The report reflected an increase in U.S. payrolls by 254,000 and a surprising dip in the unemployment rate to 4.1%. Wage growth also surpassed predictions, rising 0.4% month-over-month and 4% year-over-year.
The optimistic data created a debate among economists if Federal Reserve would cut interest rates further or not. The consensus now leans towards a more gradual approach to rate cuts, as the labor market's resilience weakens the case for aggressive monetary easing.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next:
- Bitcoin Rebounds Above $61,500 And $80K Is More Likely Than $40K, Says Top Technical Analyst
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