Bitcoin, the leading cryptocurrency, dropped sharply last night to $62,300.
While analysts indicated that the downward trend in Bitcoin may continue, 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 monitored by investors and stakeholders to understand the state of the economy.
The disclosed data is as follows:
- Non-farm employment data: Announced 114k – Expected 176k – Previous 206k
- Unemployment data: Announced 4.3% – Expected 4.1% – Previous 4.1%
Bitcoin’s reaction to the incoming data was as follows:
Effect of Non-Farm Employment and Unemployment Data on Price!
Non-farm employment data exceeding expectations is considered a signal of economic recovery in that country and has a positive impact on the currency.
Changes in the labor market significantly influence the FED’s monetary policy. The FED, which believes that the labor market should cool down in addition to a decrease in inflation, closely monitors employment data.
If the announced data exceeds expectations, we may see the DXY (dollar index) rise and Bitcoin retreat slightly. If it falls below expectations, it could cause a decline in the DXY.
An increase in the unemployment rate may lead to a sharp drop in the DXY, which would be positive for Bitcoin.
In both scenarios, volatility will be high during the minutes when the data is announced.