Breaking News: U.S. Non-Farm Payroll (NFP) Data Revision Could Cause Turmoil in Cryptocurrency Market
Get ready, because next week, the Bureau of Labor Statistics (BLS) is set to revise the U.S. non-farm payroll (NFP) data for July 2024, and this could have a massive impact on the world of cryptocurrencies. While many traders usually keep an eye on traditional economic indicators like FOMC meetings or CPI figures, the upcoming NFP revision is something that could shake up the markets, including cryptocurrency prices.
According to estimates from Goldman Sachs analysts, anywhere between 600,000 to 1,000,000 jobs might be revised downward, signaling a much weaker labor market than previously believed. This potential revision could lead to significant market movements.
If the updated NFP data shows a substantial decline in employment, it could lead to a shift in market expectations for Federal Reserve policy. While current market sentiment predicts slight interest rate cuts in the coming year, a weaker job market could prompt more aggressive rate cuts sooner than expected.
Investors may react to this change in expectations by selling off risky assets like stocks and cryptocurrencies, leading to increased volatility in the crypto market. Given the strong correlation between cryptocurrencies and traditional financial markets, any significant changes in the latter are likely to impact the former. If Goldman Sachs’ predictions about the revised NFP data come true, Bitcoin could potentially test lower support levels and drop back to the $57,000 range.