• The Bitcoin price is heavily influenced by macroeconomic conditions in the US, and after reaching a new 5-month high of $24,241 last Wednesday, it has dropped by 3%.
• This decline was caused by the US Bureau of Labor Statistics reporting an impressive 517,000 new job growth last month and the dollar index (DXY) subsequently seeing a strong bounce.
• Investors will be looking to Jerome Powell’s statements tomorrow for clues on future monetary policy. Thursday’s announcement of initial jobless claims in the US is also important.
Impact Of Macroeconomic Conditions On The Bitcoin Price
The Bitcoin price continues to be strongly influenced by macroeconomic conditions in the US. After BTC reached a new 5-month high of $24,241 last Wednesday, the price is on the decline again. Over the weekend, Bitcoin lost another 3% and was at $22,810 as of press time. Initially, the price was propelled higher last week by the Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points and dovish comments from Jerome Powell.
US Job Growth And Dollar Index Impact
According to the latest figures from the U.S. Bureau of Labor Statistics, the U.S. economy saw a sensational 517,000 new job growth last month – a sign that the Fed is likely to keep interest rates high for longer. The dollar index (DXY) subsequently saw a strong bounce from below 101 to its current 103 level – dragging down BTC prices in turn.
Investors Eyeing Jerome Powell’s Statements
The Upcoming Week For Bitcoin And Crypto After many important economic figures last week, crypto investors can expect a rather uneventful trading week but with one major event: Fed Chairman Powell stepping in front of cameras once again tomorrow (Tuesday). Investors will listen to whether Powell will back up or repeat his dovish statements from his FOMC press conference depending on recent labor market data released this past Friday..
Initial Jobless Claims To Be Released On Thursday
In addition to this Tuesday’s statement from Powell investors should keep an eye out for Thursday’s announcement of initial jobless claims in the US which will take place at 8:30 EST as it is considered one of two most relevant measures for assessing how well jobs are doing in America along with Friday’s labor market report release..
It remains unclear as to what kind of statements Jerome Powell might make following solid labor market numbers but investors should pay attention regardless as this could have an effect on future monetary policies and consequently affect Bitcoin prices positively or negatively depending on what he says..