Top 3 Insights for Crypto Markets from This Week’s Economic Data
1. Fed’s Rate Cuts: The inflation data released this week indicated that inflation is higher than expected, suggesting that the Federal Reserve’s rate cuts may take longer to come into effect. However, the market still anticipates a rate cut as early as June.
2. Decreasing Unemployment: This week’s unemployment data showed a decline in new claims for unemployment benefits, which is positive for crypto markets. Lower unemployment often leads to a higher number of day traders and increased risk appetite among investors, supporting the crypto market.
3. No Purchasing Pressure: Some investors believe that the US economy has stabilized and that further growth is possible without significant inflation risks. This slowdown in employment and income growth may result in reduced purchasing pressure, as people have more ability to buy, impacting crypto markets.