Bitcoin, the leading cryptocurrency, fell below $54,000 due to a sharp decline due to Mt.Gox refunds.
While some analysts believe that the selling pressure will be less than expected and the price will react at these levels, all eyes on BTC and altcoins today are 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 206k – Expected 191k – Previous 272k
Unemployment data: Announced 4.1% – Expected 4.0% – Previous 4.0%
The reaction of Bitcoin and Dollar (DXY) 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.