In what ways can US jobs data and Federal Reserve policy concerns affect Bitcoin price movements?
Why is this the correct answer?
Strong U.S. jobs reports often increase investor confidence in economic growth and lead to higher risk asset allocation, which can lift Bitcoin prices. Conversely, if the Federal Reserve signals tighter monetary policy to combat inflation, higher interest rates can reduce liquidity in markets, increasing volatility and potentially pressuring Bitcoin. For beginners, better jobs numbers can act like a tailwind, while hawkish Fed talk can act like a headwind for Bitcoin.
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