When there were fewer job opportunities available, the value of the two biggest cryptocurrencies in terms of money went up.
On Tuesday, there was a report that showed there were not many job vacancies available, and as a result, the values of Bitcoin and Ether, which are two of the biggest cryptocurrencies, went up by almost 2% during that hour.
The report told us that in March of this year, there were fewer job openings available in the United States than people expected. The number of job openings was 9.6 million, which was the lowest it had been since April of last year.
Lately, people who watch the crypto market have been thinking that it’s good for cryptocurrency values if there are fewer job opportunities available.
- The Federal Reserve will keep increasing the cost of borrowing money until it’s sure that inflation has slowed down and is under control.
- When the cost of borrowing money goes up, it’s not good for the value of assets like cryptocurrency.
- If we want to reduce inflation, the job market needs to slow down.
To put it simply, when there are reports of not many job opportunities available, it can actually be good news for the market, including cryptocurrency. However, it’s not always clear how much of an impact these reports will have on prices. But on Tuesday, when Bitcoin’s value went up after the report was released, it seemed very likely that the report had an effect. After the initial increase, the prices of Bitcoin went back down for the rest of the day.
It’s possible that the crypto market is starting to change in anticipation of a big announcement about interest rates from the U.S. central bank on Wednesday. But people already expect the announcement to increase interest rates by 25 basis points, so this news might not have much of an impact on the market.
Something interesting is happening because other risky investments, such as stocks, didn’t respond in the same way as cryptocurrency did to the jobs report. When the report came out, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all went down.
The way that the values of cryptocurrency and stocks change at the same time has become less similar this year. In the past, when one went up or down, the other tended to follow, but now they’re not as connected. For example, the strong connection between the value of Bitcoin and the S&P 500 has gone from 0.80 to 0.27.
Some measurements of the cryptocurrency market suggest that things might be calm for the next few days while the Federal Reserve thinks about what to do with interest rates. The amount of Bitcoin and Ether that’s stored in trading platforms is about the same as it was at the start of the year.
Usually, when people want to sell their Bitcoin or Ether, they move it to a trading platform first. But the amount of Bitcoin and Ether on these platforms hasn’t changed much, even though the value of these cryptocurrencies has gone up a lot this year. This suggests that people are choosing to keep holding onto their Bitcoin and Ether, even though they could sell them for a higher price now.
It’s important to remember that this doesn’t necessarily mean that the price of cryptocurrency will keep going up. However, the fact that people are choosing to hold onto their Bitcoin and Ether, instead of selling them, suggests that the cryptocurrency market is strong and that people think the value of these assets will stay where it is or go up even more.
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