As the U.S. employment index shows a solid level, the price of Bitcoin, a representative cryptocurrency, is on the decline. Based on employment indicators, it is observed that the Fed’s tightening policy will continue.

According to CoinMarketCap, a global virtual currency market broadcasting site, the price of Bitcoin was 19,795 dollars as of 4:55 p.m., down 1.11% from the previous day.

Bitcoin prices weakened as analysts say the Fed will continue its tightening policy due to solid employment indicators. Non-agricultural jobs in the United States increased by 315,000 in August. This is a decrease from 526,000 units in the previous month, but it exceeded expectations. However, the unemployment rate rose slightly from the previous month to 3.7%.

The U.S. stock market, which is showing synchronization, also closed lower due to such concerns. On the 2nd (local time), the Dow Jones 30 Industrial Average fell 337.98 points (1.07%) from the previous day to 31,318.44, and the large-cap S&P 500 index fell 42.59 points (1.07%) to 3,924.26. The Nasdaq index, which is centered on technology stocks, fell 154.26 points (1.31%) to 11,630.86.

“After the announcement of the U.S. employment index, Bitcoin prices rose to $20,400 and retreated below $20,000. Most of the views are that the employment index does not change the Fed’s outlook for a key interest rate hike.”

Meanwhile, according to alternative, a virtual currency data provider, the fear and greed index, which indicated investor sentiment as an index, was 21 points (fear), down 4 points from the previous day. Alternative’s fear and greed index means that the more you get zero points, the more pessimistic you feel about investment, and the closer you get to 100, the more optimistic you are.

Leave a Reply