The number of initial jobless claims in the U.S. for the week ending August 23 is 229,000, expected 230,000, and the previous value was revised from 235,000 to 234,000.
In simple terms: This data is bearish for the cryptocurrency market, meaning it is somewhat bearish!
The number of initial jobless claims is lower than expected, indicating that there aren't as many people looking for jobs in the U.S., the labor market remains stable, and the economy looks decent.
At this point, the market may think: The Federal Reserve may have previously considered lowering interest rates (easing policy) to support the economy, but now that the economy isn't bad, doesn't that lower the probability of rate cuts? It may even lean more towards tightening policy. The cryptocurrency market actually benefits greatly from "easing monetary" policies, and if interest rates are not cut, or even tightened, the flow of money into the cryptocurrency market may not be as high.
Additionally, when the economy is good, people are more willing to invest their money in traditional market risk assets like stocks, which are, after all, more stable. The cryptocurrency market inherently has higher risks than stocks; thus, funds may not flow into it, and even money that was previously in the cryptocurrency market might withdraw, which could easily lead to a drop in cryptocurrency prices.
Of course, this is not absolute. If there is good news in the cryptocurrency market (such as the launch of a major project or relaxed regulations), it can offset some of the bearish sentiment, but looking solely at this unemployment data, it is bearish for the cryptocurrency market.
