🔴 The recent U.S. employment report has significantly impacted the cryptocurrency market, wiping out open interest in Bitcoin worth over $500 million.
🔴 According to the U.S. Bureau of Labor Statistics, unemployment in the country has reached its highest level since the pandemic began. However, private sector hiring continues to grow. This suggests that the economy is slowly recovering from the crisis.
🔴 However, the mixed signals from the job vacancy report have caused market fluctuations. On one hand, increased hiring indicates economic strength, but on the other, the rise in unemployment and stable workweek durations point to underlying weaknesses.
🔴 The cryptocurrency market’s reaction reflects its sensitivity to macroeconomic indicators. A potential interest rate cut is expected, which could lead to an increase in liquidity in the U.S.