American jobs report could be highly important for Bitcoin
Last Updated on 7 October 2022 by CryptoTips.eu
Uptober, normally the best month for Bitcoin, has so far not really delivered what crypto investors had hoped for. Even though the world’s largest digital currency is trading neatly around $20,000, it’s still waiting for a major boost to take it to the next level. Today’s US jobs report may be that boost, if it delivers what investors expect.
In fact, they want to see that there are fewer jobs. A low job number sends Bitcoin higher (as this indicates a declining economy and falling inflation), a high job number sends Bitcoin lower. Or at least that is the theory.
Interest rates
This macro data will then help the Federal Reserve decide whether further rate hikes are needed or not. If the current (already high) interest rates in the US are enough to cool the market, investors will understand that it is time to go ‘risk-on’ again as we can look forward to the period beyond high interest rates.
Crucial US Jobs Report Could Test Fed's Resolve, Bitcoin's Resilience . Another week, another shift in tone: Traders in traditional markets are once again betting that the Federal Reserve could soon pivot to a softer stance on monetary policy.
— Jinnie (@jiangtu0916) October 5, 2022
If a lot of jobs have been created, things are still going too fast and the Fed will have to intervene again, Probably at its next meeting in November.
Slowly, but surely, the U.S. economy follows the rest of the world.
— Michaël van de Poppe (@CryptoMichNL) October 4, 2022
Job openings largest miss in recent 15 years.
ISM PMI worst number since June 2020.
Markets reacting positively, as Gold and Silver have been running up.
Close to a big breakout for #Bitcoin too.
Naeem Aslam, an analyst at broker AvaTrade explained that:
From a technical price perspective, what we see is that Bitcoin price is once again challenging the 50-day simple moving average on the daily time frame which is currently trading at $20,000. This is an encouraging sign for Bitcoin.
Next week’s inflation numbers could also prove pivotal for Bitcoin. Edward Moya, an analyst at broker Oanda said:
Bitcoin’s fundamentals still support a healthy consolidation here and that should remain the case as long as we don’t see a double dose of robust hiring on Friday and much hotter-than-expected inflation next week.
