According to a recent report, this week’s US Nonfarm Payrolls (NFP) report is set to play a pivotal role in determining the direction of the crypto market, as it will influence the Federal Reserve’s next course of action concerning interest rates.
Per experts, the NFP figures, expected to show an increase of 240k jobs in March, with the unemployment rate holding steady at 3.6% near multi-decade lows, will shape the market sentiment around the US Dollar and, in turn, impact the prices of cryptocurrencies like Bitcoin and Ethereum.
In recent months, the crypto market has experienced substantial growth, outperforming traditional financial markets as investors sought refuge in digital assets amid mounting concerns over the global banking sector. However, the upcoming NFP report and unemployment rate announcement could shift the market dynamics, with a strong correlation between Bitcoin’s price and the S&P 500 observed in recent weeks.
The report states that a better-than-expected NFP figure, indicating a robust job market, could be interpreted as bullish for the US Dollar, potentially triggering a swift sell-off in the crypto market. Conversely, a weaker NFP report with a substantial negative surprise could propel Bitcoin‘s price upward as investors seek alternative assets for safety amid economic uncertainty.
In the past, the release of the NFP report has had a significant impact on financial markets, with a surprising gain of 517,000 jobs in January 2023, far above the 223,000 initially projected by economists. As a result, the crypto market’s reaction to the upcoming NFP data will be closely monitored by investors and analysts alike, with potential implications for the broader financial market.
