Bitcoin (BTC) and altcoins are rising with the excitement of the spot Bitcoin ETF, but investors continue to closely follow macro data. Along with the global markets, the cryptocurrency market has been waiting for and the US construction permits data, which is one of the most important macro data of the day, has recently been announced. The US Department of Commerce has released the construction permits data for October, which is not yet fully formed.
US Construction Permits Data Revealed
The US construction permits data, one of the important macro data of the day, has been announced recently. The US Department of Commerce announced the construction permits data, which was expected to be 1.473 million, as 1.471 million. The previous US construction permits data for September was expected to be 1.455 million and was announced as 1.473 million on October 18.
On the other hand, the US construction permits data decreased by 4.5% monthly, exceeding expectations. Expectations were for a 4.4% decrease.
What Does It Mean for Bitcoin and Altcoins?
The construction permits data shows the annual level of construction permits for new housing in the US. The upward trend in the data has a positive impact on the US dollar, which is the country’s currency, and therefore the US Dollar Index (DXY). These permits are an indicator for the housing market. While an upward trend has a positive effect on DXY, it has a negative impact on risky markets such as BTC and altcoins.
Strong housing activity indicates that consumers with sufficient capital to make large investments and the construction industry are healthy. More importantly, new housing activity creates an economic demand effect, such as homeowners buying materials for their own homes and builders meeting their demands.
While market observers point out that the cryptocurrency market, which is currently diverging from global markets with the expectation that a spot Bitcoin ETF will be approved in the near future, continues on its way unaffected by macro data, the recent US construction permits data falling below expectations is a positive development for the cryptocurrency market.
