Crypto Bull Run Expected Post US Jobless Claims

The US Department of Labor has provided the data on this week’s unemployment. New jobless claims surged to 219,000. Economists had estimated 204,000 claims. Filings rose from the previous week’s 193,000 to this week’s 219K.

This surge in new unemployment claims may inspire a cryptocurrency bull run. Initial jobless claims denote the total number of individuals who applied for unemployment insurance. The surge in inflation rates is consistent with the robust labor market.

The Federal Reserve stated that low unemployment and a tight labor market might result in higher prices. And hence, a rise in unemployment rates will likely reduce the market’s hawkishness.

The future of the cryptocurrency market depends on the state of the economy as a whole. The Federal Reserve has maintained its deposition of tightening monetary conditions. Susan Collins, a Fed official, expressed concern about a rise in the unemployment rate owing to the central bank’s position.

Economists are of the opinion that the current level of claims is still below historic norms. With a rise in unemployment figures, the S&P 500 and its futures recovered losses. However, new and reopened claims are at never-before lows. And hence, it was not followed by a significant surge.

The Fed will be obliged to reconsider its aggressive approach unless unemployment claims seize to rise. This will likely lead to a significant upswing in the cryptocurrency market.

The recession in 2023 is presumably the fault of central banks, according to the UN and the World Bank. With the midterm elections approaching, legislators are becoming skeptical of the Fed’s attitude.