Bitcoin has bounced back from its early November sell-off, climbing 6% to around $105,000, as traders are told to “buckle up” for a bitcoin price shock.
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The bitcoin price, which remains far from its all-time highs of $126,000 per bitcoin, briefly dropped under $100,000 last week, sparking fears a bitcoin price crash nightmare could be coming true.
Now, as JPMorgan reveals huge bitcoin bets and predicts a $3.5 trillion bitcoin price boom, Goldman Sachs has warned the U.S. may have seen the biggest decline in jobs since late 2020 as the Federal Reserve scrambles for data ahead of its December interest rate meeting—predicted to propel the bitcoin price higher.
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Federal Reserve chair Jerome Powell has been warned the jobs market may have taken its biggest step down since late 2020 by economists at Goldman Sachs.
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The number of U.S. nonfarm payrolls—a measurement of public and private employment—plummeted by 50,000 in October, according to Goldman Sachs’ calculations.
“Our job openings and labor market tightness trackers continued to decline, and our newly constructed layoff tracker also revealed an increase in layoffs over the past few months,” Goldman Sachs analysts wrote in a note seen by the Wall Street Journal, with such a decline the biggest since late 2020.
The government shutdown, which could be coming to an end this week after stretching to become the longest ever, has delayed the publication of non-farm payrolls reports for September and October, leaving Fed policy makers blind to the evolving economic situation.
“The anticipated government reopening is expected to restore market optimism, support increased liquidity, advance crypto regulatory progress including altcoin U.S. ETF listings, and the prospects for a Fed rate cut on December 10, all of which could supportive for bitcoin and other digital assets,” analysts with Tagus Capital wrote in an emailed note.
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The bitcoin price has dropped from its all-time high of $126,000 per bitcoin but traders are confident it will bounce back.
Forbes Digital Assets
The odds on the crypto-powered Polymarket prediction platform of a December interest rate cut have gradually climbed in recent months as traders bet the flagging economy will overcome fears of a return of inflation if the Fed futher cuts rates.
“As expectations mount for forthcoming Federal Reserve rate cuts, the liquidity tailwinds may further amplify risk-asset flows,” Ignacio Aguirre, chief marketing officer at bitcoin and crypto exchange Bitget, said in emailed comments.
“Combined with the seasonality tailwind and growing institutional appetite, this backdrop sets the stage for a meaningful breakout that could fuel broader innovation in blockchain and digital assets. Key catalysts remain clearer regulatory frameworks, substantial institutional inflows via ETFs, and global macro shifts such as sustained lower interest rates, each of which would support long-term ecosystem expansion and mainstream adoption.”