• Bitcoin breaks $20k following the release of Non-Farm Payroll (NFP) and unemployment data, as markets favour 25bps instead of 50bps.
• Unemployment rate increases to 3.6%, while Dollar Index retreats to 104.8, affecting EUR and GBP currencies.
• FOMC Meeting on 22nd March is expected to announce 25 bps rate with a terminal rate of 5.50%.
Unemployment Rate Increases
The unemployment rate has recently increased to 3.6%, which is higher than the estimated 3.4%. This increase in unemployment has been accompanied by an increase in the price of Bitcoin, breaking past the $20,000 mark for the first time ever.
Non-Farm Payroll Data
The US Non-Farm Payroll (NFP) data was also released alongside this news, with 311k jobs created compared to estimates of 205k. This further supports the idea that there may be some economic recovery taking place despite the increasing number of unemployed people in America.
Dollar Index Retreats
The Dollar Index (DXY) retreated to 104.8 after this news broke out, causing major currencies such as EUR and GBP to strengthen against it. The current market sentiment suggests that a 25 bps rate is most likely for the upcoming FOMC meeting on 22nd March, with a terminal rate at 5.50%.
Crypto Markets React
The crypto markets have reacted positively to this news, with Bitcoin breaking through $20k being seen as a sign of institutional investors entering into the space and increasing demand for digital assets such as cryptocurrencies or digital tokens issued by companies like Coinbase or Huobi Token (HT).
Overall, this news has had positive impacts on both traditional and crypto markets alike; with Bitcoin breaking past $20k indicating an influx of institutional investors into crypto markets and strengthening major currencies against DXY showing improving economic conditions in certain countries across Europe and America alike.