U.S. Unemployment Rate Plunges to 3.4%, Surprising Economists
• US unemployment rate falls to an unexpected 3.4% in January, 517k new employment created
• Crypto markets remain strong despite weakening Dollar and increasing funding rates
• Bitcoin prices stabilize at $23,501 after breaking the $24,000 barrier
U.S Unemployment Rate Drops Unexpectedly
Statistics show that in January, a staggering 517k new employment were created, which was around 2.5 times higher than December’s 223,000. The jobless rate has decreased to 3.4% from 3.5% in December and is lower than what economists had forecasted for the same – 3.6%.
Crypto Market Remains Strong
Typically, a weakening dollar is signaled by figures that are lower than expected or by a decrease in the number of available jobs; however this situation is beneficial for Bitcoin and other conversely linked assets due to its inverse relationship with the dollar. The announcement of the CPI statistics completely altered the market’s mood and buyers regained control as cryptocurrency pushed beyond the $24,000 barrier – currently trading at $23,501 as per CMC.
Bitcoin Prices Stabilize After Breaking $24K Barrier
Yesterday buyers regained control as cryptocurrency pushed beyond the $24,000 barrier; however today prices did feel some heat but ultimately managed to stabilize trading at $23,501 according to CoinMarketCap (CMC). If Bitcoin continues on this pattern there is a chance of an uptick even though it hasn’t followed this rule of thumb during recent occurrences of NFPs (Non-Farm Payroll) where results exceeded expectations while BTC candle closed green every single day.
Funding Rates Increasing Again
The addition of new employment is good for the Dollar but bad for Bitcoin; Funding rates gradually increased again confirming this although an increase was not expected with these recent results.
Overall crypto markets remain strong despite weakening Dollar and increasing funding rates while Bitcoin prices have stabilized after breaking through the 24k barrier – currently trading at 23k according to CMC (CoinMarketCap).