Impact of the US Labor Market on Bitcoin Price Forecast
Date: 2023-10-07 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
Impact of the US Labor Market on Bitcoin Price
Amid recent developments in the cryptocurrency market, the price of Bitcoin has remained relatively stable. Data on the US labor market, published in September, showed the creation of 336,000 new jobs, surpassing economists' expectations. The unemployment rate remained at 3.8%, which also exceeded forecasts.
These indicators could have potentially driven the price of Bitcoin higher, as a strengthening US economy may lead to increased interest in cryptocurrency investments. However, the market's response has been moderate, indicating that other factors are influencing the cryptocurrency's price.
Influence on Stock and Bond Markets
The publication of labor market data has also impacted stocks and bonds in the United States. The Dow index dropped by 100 points, and both the S&P 500 and Nasdaq indices displayed negative dynamics. Investors are concerned about the possibility of the Federal Reserve System (FRS) raising interest rates to combat inflation.
An increase in interest rates could potentially exert downward pressure on stock prices as it raises costs for corporations and reduces their profits. Meanwhile, the yield on US Treasury bonds continues to rise, driven by expectations of FRS rate hikes.
Inflation and Economic Situation
The majority of Americans assess President Joe Biden's policies negatively in the context of economic conditions. Mortgage rates have exceeded 7%, food prices continue to rise, and although inflation is not at the levels seen last year, it still significantly exceeds 3%.
This situation leaves the economy in an unstable position, and an increase in wages while maintaining high inflation could pose a challenge for the Federal Reserve System. FRS rate hikes may add further pressure to the market and create uncertainty for investors.
The price of Bitcoin currently remains relatively stable, but the market closely monitors economic events such as labor market data and inflation. The impact of these factors on cryptocurrencies can be unpredictable, and investors should remain vigilant in this uncertain economic environment.
