Bitcoin (BTC): Experts Assess Growth Potential Following Disappointing US Employment Data
Date: 2023-11-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
Bitcoin Growth Forecasts in Light of US Employment Data
Analysts are assessing the current dynamics of the Bitcoin (BTC) price following the recent non-farm payroll (NFP) employment data in the non-agricultural sector of the United States, as reported by the Department of Labor. The report, published on October 3, 2023, has triggered mixed reactions in global financial markets.
The employment data revealed a slowdown in the creation of new jobs to 150,000 in October after a rise to 297,000 in September. This suggests some challenges in the U.S. economy's path to recovery following the pandemic. The unemployment rate also increased to 3.9%, indicating labor market weakness.
Optimism Among Cryptocurrency Market Investors and Experts
Despite the adverse employment data, sentiments in the cryptocurrency market remain optimistic. Experts, such as Greg Magadini, Director of Derivatives at Amerdata, express confidence in Bitcoin's further growth. He points out that the Friday employment data and the decline in stock market volatility indices could serve as catalysts for Bitcoin price appreciation.
Analysts are also paying attention to the potential conclusion of the Federal Reserve System's (FRS) policy tightening in light of unfavorable economic data. This means that the FRS may no longer raise interest rates, which, in turn, could create a more favorable environment for investments in cryptocurrencies, including Bitcoin.
Volatility in Stock and Bond Markets
The reduction in volatility in U.S. stock and bond markets is contributing to investor optimism. Based on data from TradingView, the S&P 500 VIX indicator has declined from 21.13 to 14.19 over the last five trading days, while the MOVE index, reflecting bond market volatility, dropped from 132 to 118. These indicators signify that the market is becoming less nervous, which may stimulate the growth of risky assets, including cryptocurrencies.
Geopolitical Factors and Their Impact on the Market
Against the backdrop of employment data and financial market shifts, experts are also considering geopolitical factors. The conflict in the Middle East, which previously attracted significant attention, appears to be receding into the background in light of recent events. This could also contribute to the rise of risky assets and boost investor confidence.
