Macro data helps Bitcoin and crypto. Here’s what’s happening!
One might say the first is good, at least judging the performance of Bitcoin upon the reopening of negotiations in the USA. Important macro data has arrived – and more will arrive throughout the week – and they talk about a labor market in trouble. This is bad news but at the moment it is good news, because the slowdown in the labor market will act as a possible input for a rate cut.
The data arrived at 4:00 pm Italian time is that of the JOLTS Job Openings, which summarizes the jobs available and still not occupied. An index of the health of the labor market and the pressure that this could also exert, indirectly on wages and therefore on prices.
The figure is the lowest for 2 years now, a sign of a clear cooling of the labor market – which in reality has already begun some time ago and which is gradually causing an extremely overheated labor market to return… to normal. You can come and talk about it on ours Telegram channel – together with our editorial team and our specialists.
JOLTS Lower Than Expectations: Job Market Slows, Bitcoin Rises
Bitcoin tries to return above $70,000, after having lost some ground over the last few sessions. What gives a boost are the data on Job Openings, which return to levels not seen since the beginning of 2021. A good sign? For the current market configuration, yes, because it is precisely a red-hot job market that is the argument for a postponement of the first US rate cut.
To the news of a data that was not only falling, but also lower than expectations, there was a relatively vehement reaction from Bitcoin and the rest of the crypto world, which however was at least partially stopped by good data on industrial orders.
In any case, the signal is clear: a cooling labor market pleases markets with a certain appetite for risk and in particular the crypto market, although for now the strong run-up has been at least partially corrected.
Bitcoin, at the time of writing, remains substantially above $69,000, with the possibility that it will return during this session to attempt an attack on $70,000.
Boring to repeat, but the fundamentals remain unchanged
Although today’s data is in the right direction towards a rate cut scenario, it is worth remembering that it is not yet a decisive fact. Unless there are sensational upheavals that will come from the next data, we will still have to wait a long time to be able to talk about cuts in the USA.
And since that is the main measure of today’s fundamentals for the markets, we believe that today’s news, as important as it is on the briefwill however have to be compared with what will arrive later.
However, the fact that in this condition of uncertainty the crypto world remains at such interesting price levels is an excellent sign.
