Cryptocurrency

The record unemployment in the USA could be for Bitcoin in the medium term, absolutely disastrous – Coin Update

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In the United States, unemployment has skyrocketed – and it doesn’t seem like it would slow down this Trend, even if many States and cities open again.This indicates that the recent Lock down of the economy have taken a heavy toll, although the stock market sits at all-time highs.New data show that the number of new applications has not gone back on unemployment benefits in the recent period, although slightly lower, their decrease is, however, still for some kind of “V-shaped” economic recovery.This could be tied to Bitcoin, in spite of its characteristic as a “safe haven” is still firmly in the traditional markets, creating problems.

The ongoing pandemic has devastated the world economy. Nonetheless, financial markets remained relatively stable, with the Benchmark stock indices are their all-time highs around – what allows Bitcoin to trade within the 9,000-Dollar Region.

However, this stability may not last very long, as fears grow that the economic seeds due to a long decline in the unemployment claims, there is no “V-shaped” recovery.

This Trend does not reverse soon, it could scare investors and cause a market-wide sell-out, what is likely to be for Bitcoin to have a serious impact.

The number of jobless claims drops to 1.48 million

According to recent data, the unemployment claims fell this week to 1.48 million, compared with 1.54 million in the previous week.

The number of new applications has decreased in the last few months, the shock waves of the first closing was in March of this number to a maximum has increase – as the chart below shows.

Image courtesy of MarketWatch

Also, the overall unemployment figures are still incredibly high. As long as the unemployment figures do not go back to the state before the pandemic, in the order of several hundred thousand, and the unemployment numbers start to decline, seems to be an economic upturn is unlikely.

Since the financial markets – is associated with which Bitcoin closely – because of the widespread expectation of a “V-shaped” recovery in the economy is partially to remain stable, it is possible that it comes to turbulence as soon as the fear of a lethargic economic recovery is spreading.

Why bitcoin’s medium-term prospects are devastating could be

There is no question that the events of recent months have set a good sign for the macro Outlook of Bitcoin.

Nevertheless, the slopes of short – and medium-term Outlook continues to be largely from the global financial markets, which means that a fearsome closeout could also lead Bitcoin into a downward spiral.

Chris Burnike, a well-respected venture capitalists, believes that the longer BTC within the 9,000-Dollar Region, “faded”, the more likely it is that it sags more.

He describes this potential movement as of the “Macro-nervousness” driven and not as a symbol of the fundamental strength. The Investor believes:

“The longer BTC and ETH here, the more likely it is that we take another leg down to test the most important Support, despite the strong fundamentals of both. I would this rather than “Macro-Tremble”, and not as a specific for the future of crypto see”

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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