- The US Non-Agricultural Employment and Unemployment Data have been announced, and the leading cryptocurrency, Bitcoin, is attempting to recover from its sharp declines, approaching $60,000.
- Currently at around $59,000, some analysts are warning investors that the decline could continue.
- Factors such as the decline in spot Bitcoin ETFs and the decreased likelihood of a FED interest rate cut have influenced this decline, with all eyes on the economic data coming from the US today.
Bitcoin responds to US employment data, as the leading cryptocurrency shows signs of recovery amidst economic fluctuations.
Bitcoin’s Reaction to the Announced Data
The data announced every first Friday of the month is closely followed by investors and stakeholders to understand the state of the economy. The announced data is as follows:
Non-Agricultural Employment Data: Announced 175k – Expectation 238k – Previous 303k
Unemployment Data: Announced %3,9 – Expectation %3,8 – Previous %3,8
The Impact of Non-Agricultural Employment and Unemployment Data on Price!
Non-agricultural employment data coming above expectations is considered a signal of economic recovery in that country and has a positive effect on the currency. Changes in the labor market are very influential on the FED’s monetary policy. The FED, which believes that the labor market needs to cool down in addition to the decline in inflation, closely follows employment data.
If the announced data comes above expectations, we may see DXY (dollar index) rise and Bitcoin pull back a bit. If it comes below expectations, we may see a pullback in DXY. An increase in the unemployment rate could cause a sharp pullback in DXY. This will be positive for Bitcoin.
In both scenarios, volatility will be high in the minutes when the data is announced. *This is not investment advice.
Conclusion
Bitcoin’s reaction to the US employment data indicates the cryptocurrency’s sensitivity to global economic fluctuations. As the market continues to monitor these developments, investors are advised to be aware of potential volatility. While the current recovery is promising, analysts warn of potential further declines, underscoring the need for careful market observation.
