The Bitcoin and the Altcoin market have been uneasy with harsh fluctuations in recent days. While the markets experienced harsh decreases and recovery due to economic indicators, all eyes have been turned into US approaching unemployment data. In particular, signs that the labor market weaken are a great uncertainty in the markets.
Are US unemployment data weaken?
According to the latest report published by the US Department of Labor, the unemployment salary applications ended with February 22 to 242,000. This figure reached over 225,000 with market expectations, reaching the highest level of 2023. This development gives strong signals that there is a slimming in the labor market.
Washington, DC new unemployment applications increased by 2.047 percent to 2.047, while Massachusetts increased by 3.731 to 9.179’a reached 9,179. In Rhode Island, unemployment applications increased exceeding 200 percent and the total number of applications increased to 2.964. This rise in unemployment data reshapes investors’ expectations of the US Federal Reserve (FED) interest policies.
How will the US unemployment data affect the Fed’s interest rate decision?
Slimming in the US labor market can strengthen the Fed’s expectations of interest rate reduction. If the unemployment rate increases, it may be more likely that the Fed will go to interest cuts. However, a strong employment market may increase the risk of inflation, which can delay the interest rate reduction process.
On the other hand, the US Consumer Confidence Index experienced the hardest decline in the last 3.5 years in February. This increased the expectations that the FED in the markets could go to interest rate reduction in June and September. Atlanta FED President Raphael Bostic evaluated this possibility and said that there may be two interest rate cuts in 2024. However, he stressed that uncertainties in the markets may affect this decision.
Can the Bitcoin and Altcoin market be re -fluctuating?
In recent weeks, leading crypto currencies such as Bitcoin and Ethereum have experienced great fluctuations. The weak US unemployment data is weaker than expected can trigger a new wave of volatility in the crypto market, according to experts. In particular, the reduction of the US government and the increase in layoffs may cause the Fed to accelerate interest rate cuts. This can create an opportunity to recover for crypto currencies, but also increase the volatility. Crypto investors closely follow the FED’s interest rate decisions and US economic indicators. The new economic data to be announced in the coming days will play a critical role in determining the direction of the markets.
