This week will prove to be a pivotal moment for the cryptocurrency market. Earlier this week the Australian Central Bank announced a temporary halt on interest raise hikes.
Investors saw this as a signal that other governments will start to decrease their interest rates. The move affected cryptocurrencies like Bitcoin. Earlier this week, BTC rushed past the US$20,000 mark for the first time after spending most of September below it.
But the real signal that cryptocurrencies might begin to go upward in price will come this Friday. On October 7th, the United States Labor Report will issue a new “jobs report”.
A solid U.S. employment report from the Labor Department on Friday might offer policymakers a reason not to back down. If this is the case, Bitcoin (BTC), which sometimes trades like a risky asset comparable to equities, may continue under pressure.
The Chicago Mercantile Exchange’s futures traders now predict that the federal funds rate will peak at 4.5% next year, down from 4.7% only a week ago.
The shift shows that more traders are now expecting the Fed to take a more assertive stance, despite the fact that it just hiked interest rates to their highest level since 2007 and has repeatedly stated that it will not lower rates next year. Officials argue that the campaign is far from done, despite the fact that inflation remains high.
What is The Impact of Unemployment With Bitcoin?
As unemployment rises, the chances of an economy entering a recession grow larger.
A recession is a period of economic activity reduction. Retailers generally prefer to have cash on hand rather than invest it in the markets.
They may choose to avoid extremely volatile financial products such as Bitcoin.
Historically, the decline in jobs has been closely linked to the price of the S&P 500.
The figures show that the S&P 500 and job vacancies bottomed at about the same time during the 2003, 2009, and recent 2020 downturn markets.
U.S. Job Growth is Slowing Down
Post-pandemic, the United States Labor Department invested heavily in the creation of new jobs to fight off the thousands lost during 2020 and 2021.
In the August report, the Labor Department announced that the job growth was slowing down – which might be an indicator that the United States Federal Reserve’s various strategies surrounding the raising of U.S. interest rates in an attempt to manage the Nation’s inflation following the epidemic are beginning to have an effect
Despite two consecutive quarters of negative GDP, the job market in the United States remains solid, with a current unemployment rate of 3.7%. However, the decline in new job postings is an early warning indication that unemployment in the United States may rise in the coming months.