Bitcoin dips on unexpectedly positive US job figures but bounces straight back

As an analyst with a background in macroeconomics and experience observing global financial markets, I find the latest US employment data to be quite intriguing, yet not entirely unexpected given the current economic climate.

In the United States, the latest report on employment in the non-agricultural sector came out on a Friday morning, revealing a surprising addition of approximately 272,000 new jobs in May. This unexpected data left financial markets in shock and resulted in a nearly 1.8% decrease in Bitcoin‘s value.

Surprising employment data

It’s astonishing how markets still react to economic data releases from US agencies nowadays. Previously favorable figures, which had surprisingly boosted the markets, are often corrected and revealed to be less favorable several weeks afterwards, yet this seldom causes much notice or reaction.

The recently released data shows a larger-than-anticipated increase in new job creation for May, with over 100,000 positions added beyond the initial forecast of 180,000 new jobs.

It’s great news for the US economy if employment remains robust, but unfortunate for Bitcoin as it decreases the likelihood of interest rate reductions towards the end of the year.

Despite the emergence of new jobs in the US, which may or may not be an accurate representation of the current employment scenario, these developments are unlikely to significantly influence the price trend of Bitcoin as it advances towards the next phase of its bull market.

In the dollar or out of the dollar?

As an analyst, I would rephrase that statement as follows: In today’s global economic, political, and geopolitical landscape, the distinction between having or not having dollars holds significant weight. The announcements we often hear might seem like mere noise to some, but they can have profound impacts on various spheres of influence.

if you’re holding dollars, you’re exposed to the risk of currency depreciation, inflation, and increasing antipathy from an expanding group of nations who are increasingly reluctant to keep US treasuries or conduct transactions using the global reserve currency.

If you’ve run out of dollars, it’s more likely that your assets exist beyond the realm of the reserve monetary system. Such assets could include precious metals like gold and silver, as well as digital currencies such as Bitcoin. Among these, Bitcoin stands out as the swiftest contender due to its scarcity in comparison to the other two, making it a better fit for this digital age. However, be prepared for significant price fluctuations in Bitcoin, which can occur following seemingly unfavorable economic news. Over an extended period, however, there’s no match for Bitcoin, and all fiat currencies will inevitably depreciate against it. If you’re without Bitcoin, your wealth may face the brunt of failing fiat currencies.

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2024-06-07 20:24