On Friday, i.e., November 4th, the US Department of Labor released the unemployment data, indicating an increase in the rate, which hit 3.7% for October. After the data was released, the US stock market and the crypto market heaved a sigh of relief as this could mean that the FED would not continue increasing the interest rates from here on out.
However, increased unemployment is definitely a bearish sign for the US Dollar Index (DXY), but what does this mean for the crypto space?
DXY and Crypto
Well-known crypto analyst Justin Bennett has the answer.
He informs 110,500 Twitter followers that the increase in US unemployment rates is a bearish sign for the DXY but is highly bullish for Crypto.
Next, the analyst considers the present chart and claims that the hourly DXY chart indicates a fakeout. Also, he says he is still holding on to his prediction of 111.80 for DXY, which will bring in a bearish trend.
Justin Bennett further claims that the DXY value will affect the top cryptocurrencies like Bitcoin and Ethereum, and he claims 109.30 to be the critical level for DXY. This is because in the next week, if DXY closes below the said range, Crypto will see a bull run, and if DXY moves above 109.30, the crypto market will witness immense bearish pressure.
Dogecoin: What lies ahead?
The analyst also talks about the asset of the month- Dogecoin.
He says that if DOGE reclaims $0.13000, the currency will see new heights.
Now, as Dogecoin has claimed the $0.13000 area and is trading at $0.1309 after a rise of 6.29% in the last 24hrs, it appears that DOGE will see some new heights soon.
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Source: https://coinpedia.org/news/heres-how-the-dxy-index-could-impact-the-crypto-space/