US jobs increase while Bitcoin declines

US jobs increase while Bitcoin declines

Aug 10, 2022

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The most well-known cryptocurrency, Bitcoin (BTC), is still having bad luck. The price of Bitcoin has decreased in the cryptocurrency market, which is further negative news for the Bitcoin community. It corresponds with the excellent news that the US jobs report has improved significantly recently, albeit in a paradoxical way.

According to a study by the US Bureau of Labor Statistics, the number of people employed on nonfarm payrolls increased by 528,000 in July of this year, and the unemployment rate decreased slightly to 3.5 per cent. There has been widespread employment growth, with increases in leisure and hospitality, professional and commercial services, and health care taking the lead. 

The notion that the increase in jobs will spur the US Federal Reserve to keep raising interest rates damaged Bitcoin the most, despite the belief having strong economic grounds. The robust employment market in the US undercuts the currently popular assumption that the recession is a hiring brake.

In reaction to the statement made by Federal Reserve Chair Jerome Powell that there is a possibility that the Fed will go slowly with monetary tightening for the remainder of 2022, BTC had increased by 8% and Bitcoin trading moved in the band of US$22,600-US$24,500. After that, however, James Bullard, the president of the St. Louis Federal Reserve, made a statement indicating that the US central bank may opt for an extra 1.5 percentage point hike in interest rates before the end of the year.

The perplexing situation has directly affected Bitcoin's prospects, forcing it to see a price decline in the extremely unpredictable cryptocurrency market. After the US jobs report was released, Bitcoin prices dropped on above-average volume by over 2%.

Source - Analytics Insight 

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