The key data for December has just been released and BTC price It started to wink at $99,000. The latest decline did not last long. The BTC price, which shot to $ 90,500, showed us all how brutal volatility can be even in bull markets. So what does the latest data mean for cryptocurrencies?
US Data and Cryptocurrencies
Macroeconomic developments have important consequences on cryptocurrency markets, and investors have been closely monitoring the incoming data for a long time. Although the excitement about the Fed starting to cut interest rates has diminished, these data are extremely important as they can give us an idea about the rate of interest rate cuts.
US Unemployment Rate data came above expectations and the previously announced figure of 4.1%. The rate is 4.3% and up to this level is considered a limit by the Fed. However, the increase in unemployment is positive for cryptocurrencies as it will negate the possibility of the Fed pausing in interest rate cuts. Non-Farm Employment data came close to expectations.
USA short term interest rate futures rose as investors raised the possibility of a Fed rate cut following the November employment report. Investors now see an 85% chance of the Fed cutting interest rates this month, up from 67% before the jobs report.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
