#NFPCryptoImpact

The Nonfarm Payrolls report basically tells us the change in the number of people employed during the previous month, excluding the agricultural sector and workers in some other classifications.

The NFP report can affect the cryptocurrency market and we need to understand that it affects the global market first.

The NFP report has an effect on individual stocks/companies. For example, a decline in employment numbers can have an impact on companies that sell consumer discretionary items. These are not essential items, but rather “luxuries” such as appliances, electronics, high-end apparel, jewelry, entertainment, vacations, and automobiles. If a large number of people are becoming unemployed, then they are less likely to spend their income on these “luxuries.”

This finally brings us to commodities. After the release of the NFP report, we will typically see gold, oil, and gas performing strongly whenever the payrolls report numbers are worse than expected. This is because they are seen as a “safe haven” investment compared to stocks, for example, during periods of market decline.

Cryptocurrencies are also considered a commodity/safe haven, and although traders do not typically trade the NFP like forex traders, the NFP does have an eventual impact on the value of Bitcoin! Historically, when the US dollar weakens, Bitcoin usually gains, thus leading to the NFP report ultimately being important for Bitcoin investors.