Friday's nonfarm payrolls affect Bitcoin

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It has already been mentioned in the previous articles why bitcoin is likely to continue its decline. Apart from a lot of technical sell indicators, there are also many fundamental ones. For instance, the nonfarm payrolls report was published in the US on Friday. Notably, this report shows how many new jobs were created in the nonfarm sector during a month. It is assumed that any reading in the range of 200,000-300,000 or above can be considered positive. Therefore, the figure of 315,000 is positive for the dollar. Moreover, this report directly affects the cryptocurrency market. Currently, the US regulator is actively raising the rate, fighting inflation. Technically, the economy is already facing a recession as GDP has declined for two consecutive months. However, the Fed denies the fact that the recession has already started. The FOMC members said only that there was a decline after a period of strong economic growth, taking into account the readings of employment and unemployment rates. They remain positive in the US. However, they should worsen amid a recession. Therefore, as long as the figures remain steady, the Fed can believe its view is correct and continue to tighten its monetary policy.

In case the labor market begins to decline and unemployment starts to rise steadily, the Fed will longer deny a recession and will be forced to consider easing its monetary policy. If it is eased, the rate could rise less than it is currently assumed. Moreover, this aspect is positive for Bitcoin. Therefore, a strong nonfarm report is another reason for the Fed to keep raising rates. At the same time, the US unemployment rate rose from 3.5% to 3.7%. This is considered a negative fact. However, the reading of 3.7% is very low. For example, the unemployment rate in the EU is 6.6%. Even if this figure further increases, only the reading above 5% is alarming. Therefore, in both cases the regulator has enough time to continue implementing its policy. Moreover, Bitcoin can follow its bearish trend. It is obvious that these situations are different. If technical buy signals start to appear, they should be taken into account. However, there have been no such signals so far.


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