Bitcoin's Price Falls $1,000 After Employment Reports
Bitcoin's price fell by around $1,000 in light of the most recent US employment reports.
The world's largest economy released payroll and job reports for September that were slightly above expectations. This is good news for the global economy as a whole, as the United States is a major player in the world market.
It is clear that the US data releases have had a significant impact on the price of BTC recently. However, it is worth noting that the price of BTC typically reacts with a sharp price decline when the US publishes any sort of data.
- I am optimistic about the job market in the United States. Even though the numbers for September are below August and the average for 2022, the States added 263,000 new jobs during the month, and the unemployment rate decreased to 3.5%. This is a positive sign that the job market is improving, and I believe that it will continue to improve in the coming months.
- These figures suggest that the economy is doing slightly better than expected, especially considering the aggressive interest rate hike by the nation's central bank. This is good news for the country, as it indicates that the economy is on a strong footing despite the recent inflationary pressures.
- The disparity between wages and inflation is a major problem facing workers across the country. Inflation is outpacing wages by a wide margin, making it difficult for workers to make ends meet. This problem is especially acute in sectors where wages are already low.
- It's clear that the market is still not convinced that bitcoin is a viable investment, despite the generally positive numbers. The price of bitcoin immediately declined when most markets opened, which shows that investors are still hesitant to put their money into this digital currency.
- The primary cryptocurrency took a sharp dive from over $20,000 to just north of $19,000. While this may sound contradictive in nature, Tree of Alpha – a popular crypto analyst – took it to Twitter to explain why that might is. The market is still trying to find a bottom, and this sudden drop could be a sign that investors are still skittish about putting their money into Bitcoin.
- The strategist believes that the higher numbers of jobs added (NFP), lower unemployment, and higher wages could be bad for crypto as well as equities and vice-versa. He also added that this could lead to a decrease in demand for crypto, and a consequent decrease in prices.
3/5 The FED’s goal, to combat the inflation they created, is to squash the people’s spending power.
Any sign that people spend less, work less, or earn less will be taken as an early sign that the fed can stop raising interest rates and stop tightening earlier.
— Tree of Alpha (@Tree_of_Alpha) October 7, 2022
The post Increased Bitcoin Volatility as US Jobs Data Exceeds Expectations appeared first on CryptoPotato. The article discusses how the release of strong US jobs data caused increased volatility in the Bitcoin market.
