Could Bitcoin Prices Benefit From The Lackluster November Jobs Report?

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Today, the US Bureau of Labor Statistics (BLS) released a disappointing statistics As for November jobs growth, a development that could potentially affect tapering decisions made by Federal Reserve policymakers.

The BLS reported that US non-farm wages increased by 210,000 in November, a figure far short of an increase of 573,000 jobs. Predicted According to a Dow Jones survey.

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Could these actions provide a tailwind for the bitcoin price if government officials choose to reduce government stimulus due to weak economic data?

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

They, according to Ben McMillan, CIO, IDX Digital Assets, who emphasized the prime importance of central bank policy.

“On the back of widespread enthusiasm about bitcoin adoption in particular coming out of a recent rally (namely the launch of the bitcoin futures ETF), all eyes are now on the Fed and specifically how aggressive the asset purchases taper off. could be,” he said.

“Furthermore, bitcoin is increasingly competing for asset inflows into investments related to Ethereum, DeFi, and the metaverse, so a less aggressive tape of incentives could provide a welcome tailwind for the price of bitcoin.”

Peter C. Earle, an economist american institute for economic research and also writes bitcoin magazine, also weighed in on the situation.

“It is the gateway to normalization of interest rates,” he said.

“The Fed cannot begin raising rates (a contractionary policy move), whether to gain policy headspace or fight inflation, until it has finished buying securities on the open market (an expansionary policy measure).

“If the Fed decides to postpone taper to provide continued support for a weak recovery, it will be a huge boon for crypto assets,” Earle said.

“In many ways bitcoin and other cryptocurrencies have become complementary to gold, silver and other traditional inflation hedges rather than an alternative medium of exchange.”

“The continuation of quantitative easing could increase the already significantly inflationary draft, and drive more investors and institutions into the crypto space,” he said.

Dylan LeClair, Head of Market Research bitcoin magazine, also presented perspective on the matter.

“After the jobs report this morning the market reacted positively across the board, but the rally was minimal,” he said.

“Equity and bitcoin quickly resumed selling, with the VIX (S&P 500 Volatility Index) hitting its highest level since January.”

“Liquidity is being withdrawn across asset classes as investors prepare for a potential Fed taper,” LeClear said.

“During liquidity events, the asset class tends to have a correlation of 1.0, and recent market volatility marks the beginning of a deleveraging event.”

He also explained how the global economic situation could prove beneficial for the world’s most valuable digital currency by market value.

“It is important to remember that with real rates severely negative, every asset on the planet is functionally part of a global ‘everything bubble’ and that every investor can balance their purchasing power against central bank monetary debacles as well as the counter. seeks to protect and increase the -party risk associated with deleveraging the deflationary that comes with a debt-ridden financial system,” LeClaire said.

“In this sense, bitcoin is the best asset to own in both outcomes. This is due to the complete lack of asset rights built into the protocol to eliminate the threat of counter-party risk,” he said.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, eos and sol.


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