Dollar

Jerome Powell

Chair

Bitcoin

Reserve

Non-farm payroll data for November was higher than expected. However, the data also revealed an accompanying uptick in unemployment, which could pressure the Federal Reserve to cut interest rates later this month.
According to analysts, the likely interest rate cuts may spur investor appetite for Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>).
A total of 227,000 new jobs were added for November, beating expectations of 220,000, as unemployment rose to 4.2%. In a statement to Cointelegraph, Zach Pandl, head of research at Grayscale Investments, wrote:
<blockquote>
 "Today’s jobs report likely solidifies the case for another Fed rate cut at its upcoming meeting. All else equal, lower official interest rates tend to weigh on the value of the Dollar and benefit other currencies including Bitcoin."
</blockquote>
"Despite the retreat from above $100k yesterday, Grayscale Research thinks the crypto rally can extend into the New Year,“ Pandl continued.
The Grayscale researcher's prediction was echoed by other analysts, who likewise said the numbers would likely cause the Federal Reserve to cut rates.
<figure><img alt="US jobs data points to likely rate cut in December — Grayscale" src="https://s3.cointelegraph.com/uploads/2024-12/01939d5b-5eee-7283-ae3b-be21c52aec13" title="">
 <figcaption style="text-align: center;">
 Current unemployment rate. Source: <a data-ct-non-breakable="null" href="https://x.com/DanielBZhao/status/1865035441373589734" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/DanielBZhao/status/1865035441373589734">Daniel Zhao</a>, Glassdoor
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-competes-with-gold-us-dollar-says-fed-jerome-powell" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin is a competitor to gold, not the US dollar, reiterates Fed’s Powell</a>
<h2 id="all-eyes-on-the-federal-reserve">All eyes on the Federal Reserve</h2>
On Dec. 2, the CME FedWatch prediction tool forecast a 74.5% chance that the Fed would <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fed-december-rate-cut-probability-rises-fedwatch" rel="noopener noreferrer nofollow" target="null" text="null" title="null">lower interest rates</a> by 0.25% following its Dec. 17-18 meeting.
The odds of an interest rate cut grew following <a data-ct-non-breakable="null" href="https://www.federalreserve.gov/newsevents/speech/waller20241202a.htm" rel="noopener noreferrer nofollow" target="null" text="null" title="null">remarks</a> from Federal Reserve Governor Christopher Waller indicating support for a December reduction.
"I believe that monetary policy is still restrictive," Waller said.
"I expect rate cuts to continue over the next year until we approach a more neutral setting of the policy rate," the Fed Governor continued.
In November, the price of Bitcoin <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-volatility-federal-reserve-united-states-interest-rate-cut-uncertainty" rel="noopener noreferrer nofollow" target="null" text="null" title="null">tumbled by nearly 3%</a> after Fed Chair Jerome Powell told the media, “The economy is not sending any signals that we need to be in a hurry to lower rates.”
Jamie Coutts, the chief crypto analyst at Real Vision, recently predicted that the Federal Reserve would increase the M2 Money Supply — a measure of the total money supply currently in circulation — by approximately $20 trillion in 2025.
The analyst said the increased liquidity <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-2-trillion-investment-2025-liquidity-injections" rel="noopener noreferrer nofollow" target="null" text="null" title="null">may attract $2 trillion in capital</a> to the Bitcoin markets and pointed to historical data showing that Bitcoin tends to absorb approximately 10% of the newly created money supply when M2 increases.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/tradfi-followers-ignored-lyn-aldens-btc-tip-7-figures-hall-of-flame/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">TradFi fans ignored Lyn Alden’s BTC tip — Now she says it’ll hit 7 figures: X Hall of Flame</a>

US jobs data points to likely rate cut in December — Grayscale

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