Bitcoin is unable to move above its current level of rage and the price action has not been decided. During yesterday’s trading session, the cryptocurrency saw upside volatility, but gains were surrounded once more today as macroeconomic forces took over BTC.
Bitcoin (BTC), currently trades at $19,000. There have been sideways movements in Bitcoin over the last 24hrs and 4% profit in the past 7 days. Large cryptocurrencies are able to retain some gains over the last week but most traders follow the overall sentiment.
U.S. Economy Report Tumbles Bitcoin Price
The U.S. released its most recent economic report about the sector as Bitcoin moved towards its resistance at $20,500. The initial jobless claims for September’s last job came in at 193,000, the lowest level since April 2022, according to a report from CNBC.
It is a decline of 16,000 in jobless claims from last week’s 215,000. These data indicate that there has been an increase in the U.S. job market, and that fewer Americans are reporting unemployment.
For a total number of 1.3million, the continuing jobless claims saw 29,000 declines. These data are relevant because the U.S. Federal Reserve is determined to stop inflation rising as measured by U.S. Consumer Price Index.
This metric has been at an all-time high for many decades, which forced the bank to raise their interest rates. However, the Fed’s monetary policy seems to be having no impact on U.S. economic growth. According to the report:
These strong labor numbers are due to Fed efforts in cooling the economy and bringing down inflation. Inflation is at its highest point since the 1980s. Officials at the central bank have specifically cited the tight labor market, which is putting upward pressure on wages as the target for tightening.
Bitcoin is far from seeing a bottom price
These data resulted in Bitcoin trading to the downside and the legacy financial market trading to the upside. In order to lower inflation, the market must price in additional interest rate increases and more aggressive actions by the Fed.
As the data went public, President of the Cleveland Federal Reserve Lorretta Mester spoke about doing “what we must do to get back to price stability”. Others in the institution’s financial group are likely to take a similar stance. This will lead to greater pain and increased risk for Bitcoin.
Analyst for Material Indicators commenting on data said the following, while sharing the chart below showing the crypto market’s reaction to the jobless report:
FireCharts shows the reaction of BTC traders to economic news. Strong economic report means FED tightening hasn’t had much if any impact yet. Translated: Rate hikes will be more aggressive in Q4 as well as 2023. Macro Analysis: The bottom isn’t in.
NewsBTC yesterday reported that Bitcoin needs to remain above $18,700 to $15,600 in order to maintain any bullish momentum. The cryptocurrency might see some relief if bulls are able to defend those levels. This will allow it to push its price up north of $20,000 in advance of any economic announcements coming from the Fed.