Bitcoin, the leading cryptocurrency, dropped sharply last night to $62,300.
While analysts stated that the downward trend in Bitcoin may continue, all eyes on BTC and altcoins today turned to the economic data coming from the USA.
The data announced on the first Friday of each month is closely followed by investors and stakeholders to understand the state of the economy.
The data disclosed is as follows:
Non-agricultural employment Data: Announced 114k – Expected 176k – Previous 206k
Unemployment data: Announced 4.3% – Expected 4.1% – Previous 4.1%
Bitcoin's reaction after the incoming data was as follows:
Effect of Non-Farm Employment and Unemployment Data on Price!
Non-agricultural employment data coming in above expectations is considered a signal of economic recovery in that country and has a positive impact on the currency.
Changes in the labor market have a significant impact on the FED's monetary policy. The FED, which thinks that the labor market should cool down in addition to the decrease in inflation, follows employment data closely.
If the announced data exceeds expectations, we can see that DXY (dollar index) rises and Bitcoin retreats slightly. If it comes below expectations, it may cause us to see a retreat in DXY.
The increase in the unemployment rate may cause us to see a sharp retreat in DXY. This will also be positive for Bitcoin.
In both possibilities, volatility will be high during the minutes when the data is announced.
*This is not investment advice.