US Employment Report seems to have exceeded expectations. So what does this mean for Bitcoin? US employment is finally starting to show signs of a real recovery. The Fed, on the other hand, may have been better prepared for a hawkish policy response. Details are on Kriptokoin.com.
What will be the effects of US data on Bitcoin
According to the latest figures, the US added 467,000 new jobs in January alone, despite concerns about Omicron’s understaffing of various businesses. Bitcoin traded slightly lower after the announcement. The latest employment figures were released in a report earlier today by the U.S. Department of Labor’s Bureau of Labor Statistics. Total non-farm employment increased by over 400 thousand, while the unemployment rate rose slightly from 3.9% to 4%. By comparison, unemployment fell 2.4 percentage points compared to this time last year. It’s also just 0.5% above the unemployment rate of 3.5% in February 2020 before the pandemic started. Last month’s job growth greatly exceeded economists’ expectations, who, according to the Dow Jones poll, predicted just 150,000 new jobs. The improvement is reported to be strongest in hospitality, professional and business services, retail, and storage/transport.
In the report, “The number of unemployed for less than 5 weeks increased to 2.4 million in January and constituted 37.0 percent of the total unemployed. The number of long-term unemployed (unemployed for 27 weeks or more) has decreased to 1.7 million. The Federal Reserve has two official duties: low unemployment and low inflation. With unemployment appearing less of a pressing concern, the Fed may be more motivated to address inflation concerns. In December, CPI inflation reached 7%, close to 40 years. The Fed plans to raise interest rates this March to address inflation. However, this type of policy – even the anticipation of it – has been known to negatively impact both stocks and crypto. As borrowing money becomes more expensive, the business is no longer free to invest in particularly risky assets such as real estate, stocks or crypto. Therefore, money tends to withdraw from the markets during these times. After today’s unemployment figures, Bitcoin is down 1% to about $37,500. However, it has since surged to over $40,300 within hours.
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