While Bitcoin was trying to hold on to $ 29,000, BTC and altcoins turned to the economic data from the USA today.
The data announced on the first Friday of every month are followed closely by investors and interested parties in order to understand the state of the economy.
The data disclosed is as follows:
Expected 200k in non-farm employment data – Previous 185k – Disclosed 187k
Unemployment data Expected 3.6% – Previous 3.6% – Disclosed 3.5%
After the incoming data, the reaction of Bitcoin and the dollar index is as follows:
The Effect of Non-Farm Employment and Unemployment Data on Price!
The fact that the non-farm employment data is above expectations is considered as a signal of the economic recovery in that country and has a positive effect on the currency.
Changes in the labor market are highly influential on the Fed's monetary policy. The FED, which thinks that the labor market should cool down in addition to the fall in inflation, closely monitors employment data.
With the effect of the banking crisis, the reversing wind in interest rate increases may accelerate in favor of risky assets with lower inflation and employment data.
If the announced data comes above the expectation, we can see that DXY (dollar index) rises and Bitcoin pulls back a little. If it comes below the expectation, it may cause us to see a pullback in DXY.
The increase in the unemployment rate may cause us to see a sharp pullback in DXY. This will also be positive for Bitcoin.
In both cases, volatility will be high during the minutes when the data is released.
*Not investment advice.
