Bitcoin and rest of cryptocurrencies meet fresh unemployment report with green candles, but it is not that simple
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The end of the first week of the new year 2023 was marked by the release of monthly labor market and unemployment data. News of non-farm payroll growth and better-than-expected unemployment was greeted rather positively by crypto market participants, with large green candles quickly appearing on Bitcoin’s (BTC) and other cryptocurrencies’ price charts.
Nevertheless, as with all such news over the past year, it is impossible to unambiguously identify the further vector of movement of crypto assets’ prices on the chart. Apart from the fact that it will definitely be to the right, of course.
On the one hand, the positive result of the current monetary policy of the U.S. Federal Reserve may mark the approach of its reversal and the beginning of “printing” money again. Swap markets on this background even softened expectations on Fed rate increases at future meetings. This option is positive for Bitcoin and cryptocurrencies.
On the other hand, the 20 percentage point drop in the unemployment rate in December to 3.5% might be the green light for the regulator to raise the rate further. This is also encouraged by the fact that the dynamics of non-farm payroll growth has been declining and the current value is the lowest since December 2020. This option is negative for the crypto market.
For now, the labor market and other traditional U.S. markets, with which the crypto market unfortunately now correlates, remain in a tense state and it is still too early to be happy.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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