- A surge in new unemployment claims may spark a cryptocurrency bull run.
- The cryptocurrency market’s future is being set by the state of the economy as a whole.
Initial weekly unemployment claims data for this week have been provided by the US Department of Labor. The initial jobless claims increased to 219,000. Economists had predicted a number of 204,000. There was a rise in filings from the previous week’s 193,000 to this week’s 219K. A surge in new unemployment claims may spark a cryptocurrency bull run.
Initial jobless claims represent the total number of individuals who have applied for unemployment insurance. High inflation rates are consistent with the robust labor market. According to the Federal Reserve, low unemployment and a tight labor market may lead to higher prices. Therefore, a rise in unemployment rates is likely to reduce the market’s hawkishness.
High Volatility Expected
The cryptocurrency market’s future is being set by the state of the economy as a whole. To combat rising inflation, the Federal Reserve has maintained its stance of tightening monetary conditions. Fed official Susan Collins expressed concern that the central bank’s position may lead to an increase in the unemployment rate.
Economists at Bloomberg feel, however, that the current level of claims is still much below historical norms. As unemployment figures rose, the S&P 500 and its futures recovered their losses. However, both new and reopened claims are at record lows. A subsequent significant surge thus did not materialize.
Nevertheless, the Fed will have to reconsider its aggressive approach if unemployment claims keep rising. Thus, the cryptocurrency industry is likely to see a significant upswing. The recession in 2023 is being blamed on central banks by the UN and the World Bank. Some legislators are becoming skeptical of the Federal Reserve’s attitude as the midterm elections get near.
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