You could argue that cryptocurrencies are in a bear market, partly because central banks have slammed the brakes hard to reduce inflation. But that can only work if the economy is not hit too hard. Fortunately, this is not yet the case, according to the latest US jobs report. However, this could again mean bad news for bitcoin (BTC) and other coins.
US economy stronger than expected
Employers in the US have estimates from the Bureau of Labor Statistics (LBS) Hired 263,000 new employees. Although the economy was expected to be much weaker, there are so 63,000 mehr people hired than expected. Yet companies hired 284,000 people last month. So it is a decreasing increase. The measure of the number of new employees is called ‘Nonfarm Payrolls‘.
It’s also important unemployment rate. At the start of the pandemic, it rose so fast that it forced the Federal Reserve to come up with unprecedented financial support. Partly because of this, the crypto market has grown enormously, but it also seems to have contributed to the fact that US inflation is so high.
The unemployment rate has been reasonably good this month. It was expected that 3.7% of the US population would be unemployed, and this is exactly the actual percentage. Also last month only 3.7% were unemployed.
Will the crypto market fall further?
In our Discord group, we wrote earlier this week that this unemployment rate is at an all-time low – it hasn’t even been this low in 50 years. The job market as a whole is still incredibly strong, despite many economists expecting a major recession.
This is a green light for the Federal Reserve to continue withholding support for financial markets and raising interest rates. Over the past year, that appears to have contributed to the crypto bear market. Crypto prices falling even further is therefore a very real possibility.