CDS Crypto News Crypto News Today- US Dollar Dips Amidst Rising Jobless Claims: Bitcoin and Stocks Benefit
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Crypto News Today- US Dollar Dips Amidst Rising Jobless Claims: Bitcoin and Stocks Benefit

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Crypto News Today- US Dollar Dips Amidst Rising Jobless Claims: Bitcoin and Stocks Benefit

Crypto News- The recent uptick in jobless claims in the US has triggered a negative response from the dollar, leading to a boost for both bitcoin and equity markets, according to analysts.

US Dollar Dips on Jobless Claims Surge: Boost for Bitcoin and Stocks

Data from TradingView reveals that the US Dollar Index (DXY), which measures the dollar’s strength against major global currencies, has seen a decline of 0.45% from its Thursday peak of 105.73 to 105.25.

Market Resilience: S&P 500 Nears Record Highs, Bitcoin Surges Amidst Unemployment Data Release

In contrast, following the release of the US unemployment data, the S&P 500 hovered close to its all-time high, with the Dow Jones climbing by 0.85% and the S&P 500 and Nasdaq Composite also posting gains of 0.51% and 0.27% respectively. Concurrently, bitcoin surged by 2.5% over the past 24 hours, reaching $62,927 by 9:06 a.m. ET, as reported by The Block’s Price Page.

Analyst Links US Interest Rates, Dollar, and Bitcoin Surge

Aurelie Barthere, Principal Research Analyst at Nansen.ai, highlighted the correlation, noting, “US rates seem to have peaked on April 30, with a 20 basis point drop in the US two-year yield, indicating lower growth. Since then, the DXY is down by 1% while bitcoin has surged by 8%.”

Dollar’s Fragility Exposed: Analyst Warns of Impact from Minor US Data Shifts

Francesco Pesole, FX strategist at ING bank, emphasized the dollar’s vulnerability to even minor softening in US data, attributing the negative reaction to the modest increase in jobless claims.

As the dollar weakens, risk assets like equities and cryptocurrencies stand to benefit, with expectations rising for a potential Fed interest rate cut amidst cooling US labor market conditions.

Barthere’s Warning: Dollar’s Decline Could Ripple Across Credit and Crypto Markets

Barthere cautioned investors to remain vigilant, noting that a sustained downturn in the dollar could adversely affect credit markets and risk assets. She emphasized the importance of monitoring signs of growth weakness, which could dampen sentiment towards risk assets including crypto.

The narrative of slowing US job growth gained traction following the release of the weekly jobless claims report, which revealed the highest level of new claims in over eight months. This data follows a disappointing US jobs report from the previous week, where job additions fell short of economists’ expectations.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News Today- US Dollar Dips Amidst Rising Jobless Claims: Bitcoin and Stocks Benefit

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