The US nonfarm payroll figures were released earlier on Friday, showing that 272,000 new jobs were created in May. The market was taken aback by these figures and Bitcoin fell around 1.8%.
Surprising employment data
When the US agencies responsible for economic data publish their figures it is surprising that the market reacts at all these days. Figures that have buoyed the market by how unexpectedly good they are, are subsequently revised in the opposite direction some weeks later without anybody really picking up on it.
These latest figures are surprising given that the expected number of new jobs for May was estimated at 180,000, so the extra 100,000 on top of this was somewhat of a shock.
Good news for the US economy was translated into bad news for Bitcoin. If employment is strong, the chances of rate cuts going into the latter part of the year recedes.
Source: TradingView
Nevertheless, just some newly created jobs, which might or might not accurately reflect the current employment situation in the US, should not have any lasting impact on a Bitcoin price that is preparing for its next leg of the bull market.
In the dollar or out of the dollar?
Such announcements are really just noise. In the economic, political, and geo-political climate the world is traversing, it is more a case of being in the dollar or not being in the dollar.
If you are in the dollar, you are facing debasement, inflation, and more of a hostile reaction from a growing number of countries who are less and less likely to hold US treasuries or to transact in the world’s reserve currency.
If you are out of the dollar, you are more likely to hold assets that are outside of the reserve monetary system. These might include gold, silver, and Bitcoin. Bitcoin is the fastest horse in the race, given that it is scarcer than the other two, and it is far more apt for the digital age. There is certainly going to be a lot of volatility in the Bitcoin price, and this can happen through what might be considered negative economic announcements. However, over the long run, there is nothing harder than Bitcoin, and all fiat currencies will continue to fall against it. If you don’t have Bitcoin, it is your wealth that will suffer the consequences of failing fiat currencies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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