The importance of incoming data from the US is increasing because the Fed should start lowering interest rates. With the increase in money supply, more liquidity could flow into risk markets, and we might see more rises in cryptocurrencies. This has happened in the past as well. However, the Fed postponed the rate cut decision in the first meetings by looking at many indicators.
JOLTS and Cryptocurrencies
For the Fed to lower rates, inflation needs to settle, and the employment front needs to ease. This is why we follow reports like Non-Farm Employment and Unemployment data along with Wage Growth. Today, the US JOLTS data was just released. This data measures job opportunities in non-agricultural sectors within the US.
Although it is a lagging indicator of the employment market, it answers questions about the Fed’s current stage and success. Powell implied in this year’s assessments that if there is an abnormal easing in the employment front, rate cuts might be expedited to balance this.
Now, with sticky inflation concerns still present, we need to see weakening in areas like wage growth and employment. This will be motivating for crypto investors. The expectation for JOLTS was 8.35M, and the previously announced figure was 8.488M. The announced figure was 8.05M. This figure, which is well below expectations, reflects easing in the employment front, causing the BTC price to jump above $69,800.
