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Bitcoin reaches $21,000 and looks like a product of economic chaos

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Key facts:
  • Bitcoin up 5 percent in hours to $21,250 after U.S. jobs report.

  • The move was correlated with the rise in major Wall Street stocks.

Bitcoin (BTC) surged above 21,000 on Nov. 4, following a U.S. announcement that spurred investor demand. The U.S. Bureau of Labor Statistics reported that the number of people out of work in the country has increased. According to the report, the unemployment rate rose in October from 3.5 percent to 3.7 percent.

There are specialists who understand that increases the probability of recession (decline in economic activity) when high inflation and low unemployment coexist. Thus they explained it Economists Larry Summers and Alex Domash previously reported to CryptoNews.

Therefore, in the face of the rise of unemployment as a setback for the economy, the demand for activity in the euro area. risksuch as bitcoin and Wall Street stocks. This scenario occurs at a time when the unemployment rate was expected to fall.

Bitcoin price Nov. 4.
The price of bitcoin rose to $21,250 after the U.S. jobs announcement. Source: TradingView.

The market analyst of cryptocurrencyMaterial indicators noted that the unemployment rate increased by 0.2 percent compared to forecasts. He noted that “the whales see this as a sign that the Fed’s rate hikes will[la Federal Reserve statunitense]might be working.”

Just this week, the Fed further raised interest rates by 0.75 percent to lower inflation, causing a slight increase With the employment report, the cryptocurrency surpassed $21,000, regaining the price it had touched in the past two years. few seconds 7 days ago. In addition, it was sold for more reaching $21,250, the highest in almost two months.since mid-September, then retreating slightly.

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After the surge in bitcoin and stocks, there has been a decline.

After trading above $21,000 for a few hours, bitcoin fell to $20,700. This was in correlation with the U.S. stock markets, which also reversed the rally they had undertaken with the announcement.

However, the cryptocurrency still has a 3 percent gain on the day for the time being, while major Wall Street stocks are down. This can be seen in the TradingView chart below.

Bitcoin prices and major Wall Street stocks have been on an up-and-down rally after the U.S. jobs report. Source: TradingView.

Therefore, it is evident what the analyst Materal Indicators predicted before the rise of bitcoin Keep in mind that one month’s report does not establish a trend, but that the market reacts to any data, right or wrong,” he concluded. Something to keep in mind for upcoming announcements that could shake the cryptocurrency’s price.

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