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Question #595

How can U.S. employment reports shape expectations for monetary policy and thus impact Bitcoin demand?

Category: General
Employment reports have no impact on Fed decisions, so they influence Bitcoin demand
Employment reports influence Fed policy expectations on rate changes, thus impacting Bitcoin demand
Employment reports always determine Bitcoin’s price, making other factors irrelevant for cryptocurrency markets
Employment reports increase Bitcoin mining activity without affecting investor sentiment or price movements

Why is this the correct answer?

This is correct because U.S. employment data shape investors’ views on economic strength and central bank actions. Strong job reports may lead the Fed to raise interest rates, making fixed-income assets more attractive and potentially reducing Bitcoin demand, while weaker employment numbers can spur rate cuts and boost demand for nonyielding assets like Bitcoin.

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