Bitcoin has been unable to break above or below its current anger, and price action remains undetermined. During yesterday’s trading session, the cryptocurrency experienced bullish volatility, but gains were once again capped today as bitcoin’s macroeconomic forces took hold.
At the time of writing, Bitcoin (BTC) is trading at $19,200 with sideways movement in the last 24 hours and 4% gains in the last 7 days. While the big cryptocurrencies managed to maintain some of their gains from last week, most of them are following the general sentiment in the market.
US economic report drops bitcoin price
As Bitcoin was moving to the next resistance level around $20,500, the US published its latest economic report on the business sector. Initial jobless claims for the last job in September came in at 193 thousand, the lowest level since April 2022, according to a report by CNBC.
This is a decrease of 16,000 from the previous week when jobless claims settled at 215,000. This data indicates that the US economy continued to see a significant rise in the labor force, with fewer people reporting unemployment.
Continuing jobless claims also saw a drop of 29,000 for a total of 1.3 million. This data is relevant as the US Federal Reserve (Fed) is set to stop inflation from rising, as measured by the US Consumer Price Index (CPI).
The latter measure is currently at multi-decade highs, forcing the financial institution to raise interest rates. However, the monetary policy of the Federal Reserve does not seem to have any impact on US economic growth. The report stated:
The strong employment numbers come amid the Federal Reserve’s efforts to cool the economy and bring down inflation, which is near its highest levels since the early 1980s. Central bank officials specifically cited the tight labor market and its upward pressure on salaries as a target for policy tightening.
Bitcoin far from seeing bottom?
As a result of this data, the old financial markets and Bitcoin are trading in a bearish trend. Market participants should be pricing in more rate hikes and tougher Fed action as it tries to cool inflation.
When the data became public, Loretta Meester, president of the Federal Reserve in Cleveland, spoke of doing “what we must do to return to price stability.” Other members of the financial institution are likely to adopt a similar position. This will translate into more pain for Bitcoin and risky assets.
Commenting on the data, an analyst for material indicators said He said The following, while sharing the chart below showing the reaction of the cryptocurrency market to the unemployment report:
FireCharts shows how BTC traders responded to the economic news. The strong economic report means that the Fed tightening has not had much if any impact so far. Translation: sharper price increases through the fourth quarter through 2023. Macro analysis: the bottom is not there.
As NewsBTC reported yesterday, Bitcoin must stay above $18,700 to $18,600 to maintain any potential bullish momentum. If the bulls can defend these levels, the cryptocurrency could see a relief that will push its price north by $20,000 before more economic announcements from the Federal Reserve.
from San Jose News Bulletin https://sjnewsbulletin.com/bitcoin-selling-amid-strong-economic-data-can-18600-hold/
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