Following the better-than-expected non-farm payroll data in the U.S., a rapid increase in Bitcoin (BTC) price was observed.
One of the most important data points in the U.S. economy, the non-farm payroll report, was released today at 15:30. An employment increase of 177,000 people occurred in April. The market expectation was at the level of 138,000 people. The previous month's figure was at the level of 228,000 people. The data exceeding expectations indicated that the U.S. economy is more resilient than expected, creating a positive atmosphere in the markets and leading to purchases of riskier assets.
Immediately after the data, the Bitcoin price quickly rose from $96,780 to $97,150. Similarly, Ethereum (ETH) was at $1,830 before the announcement, but quickly rose to $1,845 after the data. The U.S. dollar gained value following the strong employment data, and the dollar index (DXY) increased from 99.76 prior to the data to 100.0.
Why did the dollar and Bitcoin rise at the same time?
While there is generally an inverse correlation between the dollar index (DXY) and Bitcoin, an interesting situation arose in today's volatility, where both assets gained value simultaneously. Analysts state that this situation may be attributed to an increase in short-term risk appetite among investors in parallel with strong economic data. On the other hand, the continued uncertainty regarding the interest rate policy of the U.S. Federal Reserve (FED) implies that volatility in the markets may persist. Therefore, investors are expected to closely monitor the upcoming FED meetings.