1. Why Economic Indicators Matter
Bitcoin is classified as a risk asset. Macroeconomic conditions determine whether investors favor risk or safety and directly influence Bitcoin's price.
2. Major Economic Indicators
FOMC Interest-Rate Decisions
📊 Interest Rates and Bitcoin
Rate cuts: More liquidity → Preference for risk assets → BTC rises
Rate hikes: Less liquidity → Preference for safe assets → BTC falls
Unchanged rates: The response depends on market expectations
CPI: Consumer Price Index
- Rising CPI → Inflation → Concerns about rate hikes → BTC weakness
- Falling CPI → Deflation in the guide's example → Expectations of rate cuts → BTC strength
Employment Data: NFP
- Strong employment → A strong economy → Rates held or raised → BTC weakness
- Weak employment → Economic slowdown → Expectations of rate cuts → BTC strength
3. AI Macro Analysis
NOONOO TRADING uses TSMC's weekly chart as a macro filter to incorporate the macroeconomic environment.