The US jobs report sends the price of bitcoin down 2%, and Fed rate rise bets are heating up.

Around the opening of Wall Street on October 6, Bitcoin (BTC) had a quick retest of $27,000 as unexpected United States employment data shook markets.

Around the opening of Wall Street on October 6, Bitcoin tickers down $28,010 experienced a quick retest of $27,000 as unexpected United States employment data shook markets.

Employment figures "not what Fed wanted to see"

BTC price movement was tracked by data from Cointelegraph Markets Pro and TradingView as the biggest cryptocurrency dropped 2.1% in a single hourly candle.

Bulls recovered their losses after a rally, and $27,700—the price range that had been of interest before to the release of the data—is once again in the spotlight.

The U.S. non-farm payrolls (NFP) jumped to over double the level anticipated for September – 336,000 vs 170,000 — which caused the volatility. The September result's ramifications were seen as adverse for risk assets, including cryptocurrency,

Despite showing the labor market's continued resistance to the Federal Reserve's interest rate rises to combat inflation. 

Popular trader CrypNuevo responded in part to the statement, writing, "Good news is bad news since the FED wants the labor market to lose strength." on X (formerly Twitter).

'' It surprised me that the unemployment rate remained the same (3.8%) in light of this growth. Therefore, I think the numbers will be significantly revised downward.''

CrypNuevo continued to monitor the Federal Open Market Committee meeting in November and the rising likelihood that the Fed will raise interest rates once again.

The market perceives this data as a new danger for a probable extra 25bsp jump in November 1st (25% possibilities suggested yesterday vs. 31.3% probabilities today), the speaker stated, citing data from CME Group's FedWatch Tool.

"Hopefully, the CPI next Thursday will give us a clearer picture." 

CPI, or the Consumer Price Index, forms one of the key inflation indicators for Fed policy.

Continuing, financial commentary resource The Kobeissi Letter suggested that pressure was now on both markets and the Fed itself.

“Furthermore, the Fed pause was previously expected until June 2024, now a pause is expected until July 2024,” it reported on market projections for rate tweaks.

"After the revelation, market futures dropped by more than 400 points. The Fed DID NOT want to see this.''

Open interest in bitcoin declines

Popular trader Skew saw spot and derivatives traders departing on the NFP print while analyzing Bitcoin's unique response.

Related: Fed data shows that Bitcoin continues to outperform the US dollar against "eggflation"

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Another prediction for Fed action said, "Slight probability shift on Nov 1 towards a hike but still unlikely."

To assess the likelihood, one "would need to see FED tone & posturing first."

Meanwhile, fellow trader Daan Crypto Trades reported falling Bitcoin open interest (OI) in an updated study from earlier on October 6.

This has previously reached levels that had caused spikes in upside volatility to be followed by spikes in downside volatility.

"Since yesterday's peak, Open Interest has decreased by another $600M. returning to the more typical and 'healthy' levels," he concluded.

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