Increased Bitcoin Volatility as US Jobs Data Exceeds Expectations
The payroll and job reports from the world’s largest economy were slightly above expectations for September.
However, BTC reacted with a sharp price decline, as it typically happens when the US publishes any sort of data lately.
- Although the numbers for September are below August and the average for 2022, the States added 263,000 new jobs during the month, and the unemployment rate decreased to 3.5%, said the Bureau of Labor Statistics.
- These figures are slightly above expectations, especially given the aggressive interest rate hike by the nation’s central bank following the record-setting inflation.
- Nevertheless, the wages couldn’t keep up with the inflation – 5% for the former and 8.3% for the latter.
- Although the numbers are generally better than expected, most markets reacted with immediate price declines, including bitcoin.
- The primary cryptocurrency took a sharp dive from over $20,000 to just north of $19,000. While this may sound contradictive in nature, Tree of Alpha – a popular crypto analyst – took it to Twitter to explain why that might is.
- The strategist believes the higher numbers of jobs added (NFP), lower unemployment, and higher wages could be bad for crypto as well as equities and vice-versa. He also added:
3/5 The FED’s goal, to combat the inflation they created, is to squash the people’s spending power.
Any sign that people spend less, work less, or earn less will be taken as an early sign that the fed can stop raising interest rates and stop tightening earlier.
— Tree of Alpha (@Tree_of_Alpha) October 7, 2022
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