The American unemployment rate has a direct impact on financial markets, including crypto:
Rising unemployment (as per recent data 4.2%):
Indicates weakness in the economy. Investors become fearful, tending to flee from risky assets like crypto. The price of Bitcoin and other currencies might drop.
Falling unemployment:
Provides confidence in the economy. It makes investors more willing to take risks. The crypto market might rise.
However, the impact is not always direct, as the market interprets the data based on expectations:
If unemployment comes in lower than expected, the market rejoices. If higher than expected, even if the number isn't large, the market might react negatively.
