Unemployment Rate FELL, But why is the market going DOWN too??

[TRILIUNER MUDA]

Hello guys,

Yesterday, October 7 at 12.30 (GMT Time), the US government announced that the unemployment rate had fallen to 3.5% from 3.7% in the previous month.

And that's good news, because it signals that the economy is getting better, with lots of job openings.

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

https://i.ibb.co/Fn5YKcC/BTC.jpg

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[Kakmakr]

There are not ALWAYS a direct correlation to the global BTC price and some small announcement about the unemployment statistics in the US. Yes, some mayor announcement will influence the price, but these smaller announcements hardly make an impact.

There are BTC Whales and large mine owners that are manipulating the BTC price, so these small announcements will simply be swept over with some small sell and or buy orders.    In any way..... a lot of the statistics are not an actual indication of what is happening in many countries.. because that is manipulated too... 

[hosseinimr93]

The interest rate is still expected to be increased by another 75 basis points and that's affecting the markets negatively.
Also, the inflation rate is going to be updated on October 13. Usually, with decrease in unemployment rate, inflation rate increases and that's not a good sign for the markets.

[Husires]

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

What I can confirm:

• Changing from 3.7 to 3.5 is not considered significant, and therefore is not considered a positive indicator for the economy.
  
• Continuation of monetary policy and the rise in interest equations that will make the expansion of the economy discouraging.
  
• Energy problems and the temptation of high interest.
• Decline in the unemployment rate should be an indicator globally and in several countries to indicate the end of the recession.

What I can confirm is that there is no direct correlation between the bitcoin price and macroeconomic indicators.

[so98nn]

That is not really good number considering the population in US. That % fell is not really good number. It would affect the market positively if we see numbers like 1-2% or less for that matter. We are talking about unemployment here so definitely the least it is the better it is for the nation. There is whole cycle that contributes here for example, salaries, with salaries goes TDS, professional taxes, we shop, pay, the taxes are levied and much more. Obviously this is gonna affect everything on the long run.

However, current market going down because of other situation in the world. Which we already discussed ever since.

[Doan9269]

Whennwe are talking about economy relationship of a particular government then we must understand that unemployment is not decreasing only because the market price is going down or up, what must be first considered is the population growth rate, rescue measure and if possible to take a census that could help table the rescue alternative to increasing unemployment of a particular country, the right measures to start with is by adequate positioning of all economic growth factors that can alleviate poverty and must be dealt with before assuming the effect of price in relation to unemployment rate.

[TheUltraElite]

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

No, this cannot be confirmed that the news caused the dump - this is only an anecdotal link.

Unemployment rate dropping by 0.2% is a good thing, but how to significant it would be on economics needs more long term followup and not a price drop in few minutes, because that would have been due to any other reason. Let is watch and see if more jobs are getting created and how it impacts the economy.

Dont try to link every news to market movements, the second has a mind of its own. The effect or negative news is defenitely there but currently there are a lot more things happening out there such that a positive news can have a correctional effect.

[virasisog]

Hello guys,

Yesterday, October 7 at 12.30 (GMT Time), the US government announced that the unemployment rate had fallen to 3.5% from 3.7% in the previous month.

And that's good news, because it signals that the economy is getting better, with lots of job openings.

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

The .2% increase will not change the market situation or even make the economic situation a bit better. Yes, it has a good impact on the US economy but it has nothing to do with the price of Bitcoin. It could only affect a single country's economy but not the global situation. There are still huge occurrences that affect the blockvhain market which we cannot control which includes the continuous rise of inflation.

[uneng]

The decreasement from 3.7% to 3.5% is insignificant and may not represent any real change for real due to the margin error of such datas. Moreover, don't blindly believe any informations from the government because they are prone to be manipulated for political reasons.

As I see jobs' rates aren't increasing, while purchasing power is fastly decreasing with the economical politics adopted by governments in US and Europe which increase interest rates in a desperate and useless attempt to control inflation.

[The Sceptical Chymist]

There are not ALWAYS a direct correlation to the global BTC price and some small announcement about the unemployment statistics in the US.

Not only that, I'm not sure if bitcoin correlates strongly with anything except maybe the stock market--and I haven't seen any data on that.  Stocks fell pretty hard yesterday, and I'm pretty sure the big players on Wall Street don't put a huge amount of weight on a small change in unemployment numbers, which were good to begin with.

Bitcoin has been trading sideways for a while now, in the $18-21k range and it looks like it's just waiting to break out in one direction or another.  I'm sure a lot of us have seen that happen a few times before, and if my memory serves me correctly the last time BTC broke out of a sideways state it shot up to its ATH.  I'm hoping whenever we do see some price action it isn't going to be in a downward trajectory--that would be really bad, because it'd take a long time to get back to $63k (I think that's the ATH).  Keeping my fingers crossed.

[Anonylz]

Hello guys,

Yesterday, October 7 at 12.30 (GMT Time), the US government announced that the unemployment rate had fallen to 3.5% from 3.7% in the previous month.

And that's good news, because it signals that the economy is getting better, with lots of job openings.

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

Good news for who? Dose this percentage applies to the whole world?
That unemployment rate fell by 0.2% in USA does no mean the same in other countries so don't expect immediate positive impact because other countries are still battling with unemployment rate and since crypto is a currency that has the support of people from all around the world, it is likely others are not yet experiencing this improvement.

[Gayong88]

Yes, the crypto market is seeing its lowest point in a while, but there are plenty of reasons to be bearish. The biggest one is the falling unemployment rate. That's scary because usually when people lose their jobs, they have to sell their assets. That means the market should be up ahead of December, but that's not happening too much anymore.

Will robots take over? This is not a bad thing if we think about it, However, there is no denying that some jobs are being threatened. At least at this time instead of replacing jobs due to outsourcing.

[Fortify]

Hello guys,

Yesterday, October 7 at 12.30 (GMT Time), the US government announced that the unemployment rate had fallen to 3.5% from 3.7% in the previous month.

And that's good news, because it signals that the economy is getting better, with lots of job openings.

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

We have been in a very strange limbo type state in the last year, there had been a massive positive trend in the economy that was occurring off the back of exiting Covid times - plenty of jobs to go around and lots of accrued savings that needed spending. It feels like we're at the point where everything is just running on fumes and is very shortly about to fall off a cliff. The economy has been doing all kinds of crazy things but was severely upset after Russia invaded Ukraine - damaging the prospects of both countries. Ukraine exported very many raw materials and Russia was a large supply of oil & gas. This jacked up prices and has been hard to balance back out in the short term.

[South Park]

Hello guys,

Yesterday, October 7 at 12.30 (GMT Time), the US government announced that the unemployment rate had fallen to 3.5% from 3.7% in the previous month.

And that's good news, because it signals that the economy is getting better, with lots of job openings.

But why is the market responding negatively? because when the news was announced, a few minutes later the price of BTC actually dropped by about 3%

The first thing that comes to my mind is that this has nothing to do with bitcoin so bitcoin and the market in general probably did not move according to this announcement at all and the price just moved according to its own dynamics, and we must also remember that governments lie with their statistics all the time, just because the rate of unemployment went down this does not mean there are less people without a job, someone which has given up and it is not looking for a job anymore is not counted in this statistic despite being unemployed.

[odolvlobo]

The federal Reserve intends to continue raising interest rates until inflation declines or employment is severely impacted. A lower unemployment rate indicates higher inflation and means that employment is not impacted. So, the Federal Reserve is more likely to continue raising interest rates.

A rising interest rate ...

• 1. reduces demand for non-income-producing assets.
• 2. lowers the net present value of an asset.
• 3. causes a stronger dollar and lowers the value of assets when measured in dollars.

These three effects of rising interest rates cause the price of a bitcoin to fall.

[jossiel]

That's just a small percentage for the decrease of the unemployment rate, well, it's good for the US but not that having much impact for the entire market.

There's not a lot of correlation if you're going to have that two connected.

Will robots take over? This is not a bad thing if we think about it, However, there is no denying that some jobs are being threatened. At least at this time instead of replacing jobs due to outsourcing.

Just like in the past, many jobs have been taken over because of modern technology.

[dothebeats]

The change in unemployment rate would take a few months or even a year before we can feel the effects. In the case of the US government, you guys might not even feel it at all These new workers need to get some salary first then spend that salary before they can affect the economy. And if they are to make that purchase as soon as the payday hits, guess what, it's just a drop in the ocean and the US economy might not even feel the contribution at all.

These reports regarding unemployment and whatnot is hyped by the government without looking at it the way most workers see it. We need jobs, but jobs that pay an actual livable wage to help us live comfortably. If that would be the case, people will be spending more, contributing more, but meh.

[Fivestar4everMVP]

What exactly does the fall in unemployment got to do with bitcoin or cryptocurrencies in reality?
And also, what really do you think is the difference between 3.7 percent and 3.5 percent?
And again, only the government of USA made that announcement of fall in unemployment, there is no way you should expect that to have a positive impact on the price of bitcoin since bitcoin is a global currency, there are hundreds of other countries buying and selling bitcoin besides USA, so how do you think the buy orders coming from USA will make the price of bitcoin go up when hundreds of other countries are not buying but selling?

[BRINIRHA]

I think the unemployment rate is falling in the US. there is absolutely no significant relationship with the decline in BTC. you can't connect the two. because there is no close bond about it. and I think that lowering the unemployment rate at that rate will not have a big impact on improving the economy. Due to the fact that the economic crisis is still ongoing, it is not surprising that all areas of high risk investment are not too affected to be positive and are still showing a decline.

[Gyfts]

GDP reports for the U.S. economy's Q3 growth will be releasing soon, except recession. The unemployment rate is a lagging indicator of the state of the economy. Usually companies will only reduce their staff if they want immediate relief of operating cost. It allows them to retain their employees till the last the minute, despite what the GDP report says. So, it's economic recession, then a rise in unemployment. The market can react independent of these factors, but will generally use these factors in their assessment. It's not a rule.

Unemployment rate fell modestly for now, but the next 6 months would be the data that I would look for if I want to make inferences about the U.S. economy's state. Clearly the market thinks that we're in for a tumultuous time so they know something the stats don't tell us.