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Will there be a rally for cryptocurrencies after the release of US unemployment data?

Will there be a rally for cryptocurrencies after the release of US unemployment data?

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Answer Will there be a rally for cryptocurrencies after the release of US unemployment data?

The US Labor Department released preliminary US unemployment data for this week.

Initial jobless claims rose to 219,000.

Economists expected jobless claims to be at 204,000.

Claims rose from 193,000 last week to 219,000 this week.

A sudden rise in unemployment claims could drive up cryptocurrency prices.

For the record, Initial unemployment claims The number of people applying for unemployment insurance.

A strong labor market goes hand in hand with high levels of inflation in the economy.

The Fed believes that a tight labor market with low unemployment could increase inflation levels in the country.

Read:How does the BIS see banks dealing with cryptocurrency?

Therefore, the increase in unemployment numbers will definitely help calm the hawkish stance of the market.

How can US unemployment claims affect the cryptocurrency’s rally?

The macroeconomic environment determines the outlook for the cryptocurrency market.

The Federal Reserve continues to make its monetary policy restrictive in an effort to curb high inflation.

The Fed’s Susan Collins warned that unemployment will rise due to the Fed’s stance.

While economists at Bloomberg believe the number of claims is still historically low.

The S&P 500 and futures contracts erased their losses on the back of the rise in unemployment numbers.

However, initial and continuing claims remain historically low.

As a result, a strong rally did not follow.

But if unemployment claims continue to rise, the Fed will have to rethink its hawkish stance.

As a result, a strong rally can be expected in the crypto market.

The United Nations and the World Bank have already blamed central banks for the impending recession of 2023.

Read:The Ethereum network loses a portion of the market share of the blockchain and decentralized applications (Dapps)

With the midterm elections fast approaching, some lawmakers are concerned about the Fed’s stance.

Elizabeth Warren, a Democrat from Massachusetts, has questioned Federal Reserve Chairman Jerome Powell about his hard-line stance.

She believes that the Fed will not be able to rein in inflation as unemployment numbers increase.

What do unemployment figures say about the recession?

The sudden rise in jobless claims is sure to heighten fears of relinquishment.

Currently the job market is still incredibly strong, and jobless claims have typically reached 388K during past recessions.

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