Bitcoin and Crypto Market Turn Bullish After Major New Macro Report

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Gamza Khanzadaev

Bitcoin and the rest of the cryptocurrencies meet a new unemployment report with green candles, but it’s not that simple

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The end of the first week of the new year 2023 was marked by the release of monthly labor market and unemployment data. News of nonfarm payroll growth and better than expected unemployment was received quite positively by crypto market participants, with large green candles quickly appearing on Bitcoin (BTC) price charts. and other cryptocurrencies.

Nevertheless, as with all such news from the past year, it is impossible to unambiguously identify the additional vector of crypto asset price movement on the chart. Aside from the fact that it will definitely be on the right, of course.

And after?

On the one hand, the positive outcome of the US Federal Reserve’s current monetary policy could mark the approach of its reversal and the start of money “printing” again. Against this backdrop, swap markets even softened expectations for Fed rate hikes in upcoming meetings. This option is positive for Bitcoin and cryptocurrencies.

On the other hand, the 20 percentage point drop in the unemployment rate in December to 3.5% could be the green light for the regulator to raise the rate further. This is also encouraged by the fact that the non-farm payroll growth momentum is declining and the current value is the lowest since December 2020. This option is negative for the crypto market.

For now, the labor market and other traditional US markets, with which the crypto market is unfortunately now correlated, remain in a tight state and it is still too early to be happy.

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