Grayscale researcher: US jobs data hints at possible rate cut in December

Interest rate cuts, an increase in the M2 money supply, structural deficits and geopolitical tensions usually drive up the price of bitcoin.November's non-farm payrolls data came in higher than expected, but the data showed that the unemployment rate had also risen, which could force the Federal Reserve to cut interest rates later in the month. Analysts believe a possible rate cut would spur investor interest in bitcoin.The total number of jobs added in November came in at 227,000, higher than the 220,000 expected, but the unemployment rate rose to 4.2 per cent.Zach Pandl, head of research at Grayscale Investments, said in an interview with Cointelegraph: ‘Today's jobs report may have cemented the case for another Fed rate cut at its upcoming meeting. All else being equal, lower official rates tend to depress the value of the dollar and favour other currencies, including bitcoin.’ He added: ‘Despite yesterday's pullback in Bitcoin from highs in excess of $100,000, Grayscale Research believes the cryptocurrency rally could continue into the New Year.’ The Grayscale researcher's prediction was echoed by other analysts, who similarly said the data is likely to prompt the Federal Reserve to cut interest rates.