How did the U.S. jobs report showing a 4.6% unemployment rate on December 16 relate to Bitcoin's recent price drop?
Why is this the correct answer?
When the jobs report showed 4.6 percent unemployment, it heightened economic uncertainty. Investors often react to uncertainty by reducing exposure to riskier assets, such as Bitcoin. Beginners should understand that higher unemployment can lead to decreased consumer confidence and risk-off behavior, prompting some investors to liquidate crypto positions in favor of cash or safer investments. This sell-off pressure can contribute to a drop in Bitcoin’s price.
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