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U.S. nonfarm payrolls figures were released Friday morning, showing 272,000 new jobs were created in May. The market was surprised by these numbers and Bitcoin fell about 1.8%.
Amazing Employment Data
It's surprising how markets react at all these days when the U.S. agency responsible for economic data releases numbers. The number that energized the market with an unexpectedly good result was revised in the opposite direction a few weeks later without anyone really understanding it.
The outlook for new jobs in May was estimated at 180,000, and considering that the number of new jobs increased by 100,000, this figure is shocking.
Good news for the US economy turned into bad news for Bitcoin. If employment is strong, the likelihood of an interest rate cut at the end of the year is low.
Source: TradingView
Nonetheless, some of the newly created jobs, which may or may not accurately reflect the current employment situation in the United States, should not have a lasting impact on the price of Bitcoin as it prepares for the next bull market.
In dollars? Or out of dollars?
Such announcements are really just noise. In the economic, political and geopolitical environment across the world, the question of whether to be in the dollar or not is more important.
If you hold dollars, you will face devaluation, inflation and more hostile reactions from countries that are increasingly unlikely to hold U.S. Treasury bonds or trade as the world's reserve currency.
When there is a shortage of dollars, there is a greater likelihood of holding assets outside the reserve currency system. This may include gold, silver, and bitcoin. Bitcoin is the fastest horse in the race, given its scarcity and much better fit for the digital age than the other two. There will certainly be a lot of volatility in the price of Bitcoin and this could occur through what could be considered a negative economic announcement. But in the long term, nothing is more difficult than Bitcoin and all fiat currencies will continue to fall. Without Bitcoin, it is your wealth that suffers from a fiat failure.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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