Leading cryptocurrency Bitcoin is struggling to maintain its position above $70,000 as it continues to consolidate.
While some analysts expect Bitcoin to rise over the weekend and into June, all eyes on BTC and altcoins today are on economic data from the United States.
The data announced on the first Friday of every month is closely followed by investors and stakeholders to understand the state of the economy.
The data communicated are as follows:
Non-agricultural employment data: 229,000 announced – 182,000 expected – 175,000 previous
Unemployment data: 4% announced – 3.9% expected – 3.9% previous
Bitcoin’s reaction after the incoming data was as follows:
Effect of Nonfarm Employment and Unemployment Data on Prices!
Non-farm employment data beating expectations is considered a sign 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 the job market is expected to cool in addition to lower inflation, is closely monitoring the employment data.
If the announced data exceeds expectations, we can see that the DXY (dollar index) rises and Bitcoin retreats slightly. If it turns out lower than expected, we could see a pullback in DXY.
The increase in the unemployment rate could cause us to see a sharp decline in the DXY. This will also be positive for Bitcoin.
In both possibilities, volatility will be high during the minutes in which the data is announced.
*This is not investment advice.
