During the week cryptocurrency market experienced a major slide downward as its largest players dropped: Bitcoin from $71k down to $68.5k and Ethereum down to $3600.
Why Did The Market Decline?
In this news, we will outline the reasons behind the market decline.
The U.S. Employment Situation Summary Report:
- Be that as it may, without any clear reason behind it all, cryptocurrency markets crashed on Friday resulting in an unexpected drop in value for Bitcoin.
- The latest Employment Situation Summary Report in the United States revealed Wednesday that payrolls soared by 272,000 last month.
- It beat what analysts had forecasted but included an uptick in the jobless rate from 3.9% up to 4%, fuelling apprehension as regards its wellbeing.
Stronger Dollar, Weaker Crypto:
- The dollar has become more valuable compared to other currencies which has led to the strengthening of the U.S. Dollar Index (DXY).
- The rise of the U.S. Dollar Index often results in the investors moving to other assets that are considered less risky hence a reduction in the value of such assets compared to Bitcoin.
Higher Non-Farm Payrolls (NFP):
- The Higher Non-Farm Payrolls (NFP) signifies a strong labour market such that the Federal Reserve may raise interest rates.
- When interest rates rise, they usually cause the US dollar to strengthen and make it less appealing to invest in risky assets such as cryptocurrency.
When Bitcoin Price Will Increase?
According to analysis produced by financial experts, should there be less favourable employment data leading interest rates down? According to Bitcoin Price Forecast, chances are that Bitcoin would hit record levels as it goes up. Do follow up on the next release of Consumer Price Index (CPI) statistics since anything around 3.3% or below can make it possible for Bitcoin to register its highest level ever.
P.S. Note-
As for when Bitcoin price will increase, keep an eye out for any economic data or other information given out by central banks, so you don’t end up losing money when markets begin fluctuating randomly.
That’s all for today!
Catch you tomorrow with even more amazing updates on the world of crypto, only at ReadingCrypto – your daily news partner!
