[Bitcoin Now] Decline Amid Higher-than-Expected US Employment Data... Investor Sentiment Turns to 'Gonggi Nori'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Due to higher-than-expected employment data raising concerns about tightening and the US stock market closing lower, the price of the leading cryptocurrency Bitcoin is also weak.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 4:12 PM on the 6th, the price of Bitcoin was recorded at $23,197 (approximately 30.12 million KRW), down 0.31% from the previous day.

Bitcoin prices declined as the stronger-than-expected employment report increased the likelihood of aggressive tightening by the US Federal Reserve (Fed), causing mixed trends in the stock market. On the 5th (local time), the Nasdaq index, focused on technology stocks, closed at 12,657.56, down 64.02 points (0.50%), while the Dow Jones Industrial Average closed at 32,803.47, up 76.65 points (0.23%) from the previous session. The large-cap S&P 500 index ended the day at 4,145.19, down 6.75 points (0.16%).

According to the US Department of Labor's July employment report, nonfarm payrolls increased by 528,000 last month, marking the largest gain in five months. The total number of nonfarm jobs has increased by 22 million compared to April 2020, immediately after the spread of COVID-19, recovering to pre-pandemic levels. The unemployment rate stood at 3.5%, the lowest in half a century.

These employment figures significantly exceeded expectations, strengthening claims that the Fed will continue aggressive tightening. With inflation persistently high, it is expected that the Federal Open Market Committee (FOMC) will continue to raise the benchmark interest rate significantly at its regular meeting in September. There is also speculation about a possible third consecutive 'Giant Step' (0.75 percentage point rate hike). Cryptocurrency media outlet CoinDesk also reported, "The positive employment report could lead to further Fed monetary tightening."

According to cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment, remained at 31 points (fear) as it was the previous day. Alternative's Fear & Greed Index means that a score closer to 0 indicates pessimistic fear about investment, while a score near 100 indicates optimism.

This content was produced with the assistance of AI translation services.