Crypto Market News: The Bitcoin price took a slump and major US stock indices rose on Friday in the initial response to a strong jobs report for the month of May 2023. The U.S. Bureau of Labor Statistics reported that total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent. The rise in jobs for May is in equilibrium with the average monthly gain of 341,000 over the past 12 months, the report said. Meanwhile, it remains to be seen how the U.S. Federal Reserve will react to the strong jobs data when it convenes to decide the Federal Funds rate between June 13 and 14.

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In this context, it is likely that the level of uncertainty around interest rate hike or pause in the upcoming Federal Open Market Committee (FOMC) meeting only increased with the jobs data. Hence, the crypto market could see significant volatility in the days to come. In the last few days, several experts and Fed officials signaled the lack of need to raise interest rates in the June meeting.

Bitcoin Price May See A Jump

In the lead up to the FOMC meeting, chances are that there will be a mixed expectation on whether the U.S. Central bank will choose to pause rate hikes or not. Currently, only 25% of respondents in the CME FedWatch Tool feel the likelihood of a rate hike in the June meeting. However, the spillover effects of the jobs data and the aftermath of the debt ceiling deal leaves chance for a momentum shift in investor sentiment, which makes it a good case for rise in Bitcoin price, at least after the Fed decision.

That the unemployment rate moved up to 3.7% could also sound a bullish alarm for Bitcoin traders, although there’s need for caution before the all important Fed meeting. Meanwhile, the S&P 500 Index, which has a history of correlation with the crypto market, saw an encouraging jump on Friday in response to the jobs data. Hence, Bitcoin could well be up for a swing upwards in the lead up the FOMC meeting. On the bearish side, CoinGape earlier reported that the top cryptocurrency may take the plunge to below $26000 and $25200 support.

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Anvesh reports major crypto updates around regulation, lawsuits and trading trends. Published around 1,000 articles and counting on crypto and web 3.0. He is currently based in Hyderabad, India. Reach out to him at anvesh@coingape.com or twitter.com/BitcoinReddy

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Cryptocurrency mining in Cuba has been interrupted for some time due to the electricity crisis on the Caribbean island. Several parts of Cuba have experienced repeated blackouts, which have made mining rigs in Cuba unsustainable and even impossible in certain cases.

This has caused many Cubans to lose thousands of dollars that they had invested in procuring crypto-mining equipment and graphics cards. The constant electricity blackouts have led to consistent interruptions to the mining hardware, which has hindered the potential income of the operators.

Reportedly, Cuban citizens have been experiencing electricity blackouts that extend for more than 10 hours a day. Furthermore, meteorological events such as Hurricane Ian have rendered the country’s electric power plants less than optimal.

Cuban Power Grid Not Suitable For Crypto Mining

Crypto has secured a noteworthy level of functionality in Cuba. However, electricity service interruptions have repressed the profitability of this particular activity in the country. Crypto mining was once considered a wise investment by the Cubans, but the present condition of the Cuban power grid has made citizens constantly look for ways to navigate the issue.

A small cryptocurrency miner called Raydel Gonzalez, who built his own mining rig, spoke with the local news site CubaNet, where he explained the challenges and difficulties that a miner has to go through in the country.

“I, like many others, had invested a lot of money in cryptocurrency mining equipment that is not cheap,” Gonzalez said. “With the advent of blackouts, cryptocurrency mining in Cuba is unsustainable.”

Gonzalez is not the only one in this boat. Other miners like Eduardo Gomez had bought the power plants and believed that this move would keep the operations ongoing. Furthermore, there has been a scarcity of gas that has made the problem even bigger for the operations that function with off-grid power to be a sustainable source. Eduardo Gomez stated that he is struggling to bring in revenue from an investment worth $5,000.

Internet Is Also Affected By Electrical Fluctuations

Cuban miners continue to search for other alternatives to work around the electricity problem in their country. Another major resource that has suffered tremendously is the internet. The internet is a vital component for crypto mining, and that seems to be affected by electricity blackouts and shortages of fuel in Cuba as plants have become non-functional.

Miners who kept their equipment running have encountered additional problems as a result of the volatility. The last resort, which also happens to be one of the riskiest ways to make ends meet for miners, is to move their equipment to their job sites, as the state workplaces have power plants.

This can have other impacts, such as the loss of their jobs and mining hardware, along with the threat of more serious sanctions. Many miners are selling their mining rigs well below the cost price in order to make up for at least some of their investment.

Young Cuban entrepreneurs had taken to crypto mining as a way to earn these digital assets. This would provide miners with benefits, which include making online purchases abroad and sending payments and remittances for services.

Dogecoin, the largest meme-coin by market capitalisation has bled for close to a week now. Prices of the coin have looked bearish in the last 24 hours and continued to look negative at press time. In the past week, Dogecoin lost 4.9% because of falling buying strength.

The bulls have stayed out of the charts since the beginning of this month. If the current price action persists, Dogecoin would aim for its nearest support line. Bears have taken control of the market as investors have continued to flee the market.

Compared to last year at the same time, Dogecoin has plummeted by 82% from its all-time high of $0.73. Not just investors, the Federal Open Market Committee’s meeting related to hiking interest rates has also kept investors on their toes.

Dogecoin Price Analysis: Four Hour Chart

Dogecoin was priced at $0.131 at the time of writing. The coin had held prices above the support line of $0.131 quite well because meme-coin barely fell below that price in the past month. Over the past few weeks, Dogecoin has seen relatively choppy price action.

Price recovery for Dogecoin has been brief because right after the coin soared in the last week of the past month, it has been unable to hold onto the price momentum. The meme-coin displayed bearish engulfing candlesticks twice on its charts and every time after that reading, prices have slid.

Sell-off of the asset doesn’t seem unnatural as it is quite a common scenario after bearish engulfing candlesticks. Prices can continue to move lower than their current level. Immediate support for the coin stood at $0.129 and then at $0.118.

Dogecoin last traded near the $0.118 price level in March. On the flip side, the coin could target $0.14 if the bulls come around.

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Technical Analysis

The bulls in the market tried to find their way back over the last trading sessions as the coin attempted to trade above the 20-SMA line. Trading above the 20-SMA line also means a recovery in buying strength in the market.

This means that with increased demands prices could be pushed above the 20-SMA line. At press time, however, sellers outnumbered buyers in the market. The Relative Strength Index also noted a small uptick which corresponds with an increased number of buyers but at the time of writing, buying strength remained low.

MACD and Chaikin Money Flow, both have a different picture to paint for the meme-coin. Both the indicators pointed towards a positive reading at the time of writing.

MACD, which determines the market momentum underwent a bullish crossover and displayed green histograms signalling that prices have turned bullish. It is still quite early to put a finger on that as the indicator could be giving off signals based on the past immediate trading sessions where DOGE tried to recover.

Chaikin Money Flow indicates the capital inflows and capital outflows. The indicator was seen above the half-line signifying that capital inflows have experienced an increase.

Over the short-term, DOGE has depicted a bearish price action, however, demand from investors could drive the bears away over the upcoming trading sessions.

Related Reading | Bitcoin Gives Bullish Clues, Will The FED Meeting Get In The Way?

Featured image from UnSplash, chart from TradingView.com