• Unemployment rate rose to 3.6% in the U.S., with Bitcoin breaking above the $20k level immediately afterwards.
• Markets are now favouring a 25 bps interest rate increase at the upcoming FOMC meeting, with a terminal rate of 5.50%.
• The U.S. Dollar has retreated to 104.8, leading to an uplift on major currencies like the Euro and Pound Sterling.
The U.S unemployment rate rose to 3.6%, with 311k jobs created compared to an estimate of 205k jobs being created for the month of March 2023. This was enough for Bitcoin to break above the $20k level immediately after the news was released, as investors saw it as a bullish sign for the digital asset market overall.
Markets are now favouring a 25 basis point increase during the upcoming Federal Open Market Committee (FOMC) meeting on March 22nd, with a terminal rate of 5.50%. This is seen as more likely than a 50 bps hike which had been previously predicted by analysts and traders alike prior to this economic data release..
Uplift on Currencies
The U.S Dollar has retreated from its highs following this news and is now sitting at 104.8, leading to an uplift on major currencies like the Euro and Pound Sterling against it respectively .
It remains to be seen what effect this news will have on Bitcoin in terms of price action over coming weeks; however it appears that markets are viewing this data positively and that could be a sign of further increases in prices for digital assets such as BTC moving forward into 2021 and beyond..
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