Federal Reserve’s Insights Ignite Hope in the Crypto Market

Recently, the Federal Reserve made significant announcements that are viewed as extremely positive for the cryptocurrency markets. Today, updated employment data was released, shedding light on the current state of job markets. Does the data confirm the Fed’s view that we do not expect further deterioration in employment? What does this mean for cryptocurrencies?

U.S. Economic Data

The first data point was the number of unemployment claims. Although the expectation was 230,000, the actual figure remained at 219,000. The data for the previous month was revised from 230,000 to 231,000. As employment stabilizes without reaching feared levels, this weakens recession concerns, which is positive for cryptocurrencies in the context of the Fed beginning to lower interest rates.

Market Reactions and Bitcoin Surge

As short-term interest rates in the U.S. drop following the economic data, traders have increased their predictions that the Fed’s next move will be a 25 basis-point cut. The continuing unemployment claims came in at 1.829 million, which is below the anticipated 1.85 million mark. The previous month’s ongoing unemployment claims were also revised down to 1.843 million. This is also considered favorable for cryptocurrencies.

Bitcoin $104,228‘s price has finally reached $63,000, and volatility may increase with the U.S. market opening.