U.S. economy recovers as bitcoin price falls
The number of applications for unemployment benefits in the United States has reached a "pandemic minimum." Some experts attribute the fall of bitcoin to this. According to them, the U.S. economy is recovering at a faster pace than traders expected.
The first cryptocurrency on the market fell this Thursday, reaching the mark of $50 465 on Huobi, continuing the decline in comparison with the last trading sessions. Traders began to lose confidence in the potential demand on the basis of an optimistic economic forecast for the US. Although in early March, U.S. investors were looking for better alternatives to investing cash against the background of the falling dollar and the declining yield of the U.S. Treasury.
Now, the spread of COVID-19 vaccination, the easing of restrictions on business and the flow of stimulus packages from the agency have played the role of a kind of "layer" for the American economy. Now citizens spend much more money on enterprises that have suffered losses due to coronavirus. Funds are gradually returned to sports establishments, beauty salons, as well as to the stagnant hotel and restaurant business.
Ben Ayers, a senior economist at the Wall Street Journal, called the fact that fewer people in the U.S. are losing their jobs - a great sign of the improvement in the country's economy.
Bitcoin, which was moving in sync with Wall Street at the height of the pandemic, fell at least simultaneously against the background of the Nasdaq Composite and the S'P 500 indices.
As vaccine supplies and restrictions are now being raised by the new wave of coronavirus, many financial institutions are predicting a slow recovery in the world economy. Consumers in the U.S. for their part risk only worsening inflation if the appetite for government bonds and shares of the tech giants continues to be high.
Bitcoin, like the entire crypto market, is entering a period of uncertainty. On the one hand, the prospect of high inflation and depreciation of cash can attract even more investors and even large players to the industry, as is happening more often in recent months. On the other hand, the shift in emphasis in favor of stagnating sectors of the economy, such as energy, hotel, restaurant business and many other industries, offers investors a less risky alternative to placing capital after they get rid of "overvalued" assets in the form of digital currencies they have previously bought.
Now the main cryptocurrency on the market supports the 50-day moving average, but a failure below the current level can bring bitcoin down to the value of 44,000 dollars.