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One of the nightmares brought upon us by the Biden administration has been experiencing one of the fastest interest rate hikes in history. Powell remains in his position and will stay there until his term ends. The Federal Reserve, which considered inflation to be temporary back in 2021, has now paused interest rate cuts due to the pressing need to combat inflation, which, while not incredibly far from 2%, remains a concern. So, why is today’s data good for cryptocurrencies?
U.S. Data and Cryptocurrencies
The U.S. JOLTS job openings data was just released, and the lower-than-expected figure is supportive for cryptocurrencies. Why is a lower-than-expected job data supportive for cryptocurrencies? We have seen in the long-standing statements of the Fed Chair and members that “if employment loosens, it could encourage us to lower rates.”
Market Reactions
This is exactly why the announced figure of 7.6 million, compared to an expectation of 8 million, is supportive for cryptocurrencies. The latest data, which is also below the previously reported 8.09 million, may prompt the Fed to reconsider its stance.
In recent minutes, there have been some important developments, with BTC hovering in the six-figure price range. Reports suggest that Panama is considering canceling its port agreement with a Hong Kong firm. According to CCTV, China may revisit its retaliation in response to U.S. actions.
These steps signal that we might hear favorable news for risk markets in the upcoming U.S.-China discussions expected within a few hours.
