© Reuters. Positive US economic data saves Bitcoin after crash to $19k
CriptoFácil – Nonfarm (NFP) data from the United States showed that the US economy created 311,000 jobs in February, beating forecasts for a gain of 205,000.
The month of February was expected to see a relatively smaller increase in the jobs report compared to January. The huge increase of 504,000 (revised from 517,000) in January was beyond expectations, but also noted that the economy was in good shape.
In addition to the strong jobs report, the jobless rate stood at 3.6%, while the labor force participation rate was little changed at 62.5%, still below pre-pandemic levels of 63.3% in February. from 2020.
However, the positive data helped to staunch the bleeding in the cryptocurrency market, taking it back to $20,000.
Positive data hold bleed
Analyst Aaryamann Shrivastava points out that CME Group’s FedWatch tool shows that markets are pricing in a 78% probability of a 50 bps rise in March rates.
“Still, despite the higher-than-expected job gain, the US Dollar weakened as an immediate reaction, driving Bitcoin price back above the $20,000 level to the $20,300 area. The unexpected rise in the unemployment rate has helped to temper expectations of rate hikes,” he said.
According to Shrivastava, in the future, the Fed is expected to raise the rate by 50 bps in March, a sentiment also shared by President Jerome Powell.
“The latest economic data was stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said.
The analyst highlighted that it is clear that the NFP report helped to hold the BTC price back to $20,000 along with which it rose more than 1.02%, trading at $1,406. The price saw a similar reaction, gaining 2.32% to $0.3113.
By CriptoFacil