As the downward trend in the leading cryptocurrency Bitcoin continues, the price dropped to the $ 56,000 levels.
While analysts state that the downward trend in Bitcoin may continue, all eyes on BTC and altcoins are now turned to the economic data to come from the USA.
The data announced on the first Friday of each month is closely followed by investors and interested parties to understand the state of the economy.
The data disclosed is as follows:
Nonfarm Payrolls Data: 142k Announced vs. 164k Expected vs. 114k Previous
Unemployment data: Announced 4.2% – Expected 4.2% – Previous 4.3%
Bitcoin's reaction after the data came was as follows:
The Effect of Non-Farm Employment and Unemployment Data on Prices!
A higher than expected non-farm payrolls data 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 believes that the labor market needs to cool down in addition to the decline in inflation, is closely monitoring employment data.
If the announced data comes in above expectations, we may see the DXY (dollar index) rise and Bitcoin pull back a bit. If it comes in below expectations, we may see a pullback in the DXY.
The increase in unemployment rate could cause us to see a sharp pullback in DXY, which would be positive for Bitcoin.
In both cases, volatility will be high in the minutes when the data is released.
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*This is not investment advice.