While the U.S. shows questionable jobs statistics, the cryptocurrency market is on the rise
While most countries recover from the “covid crisis,” the U.S. was showing significant growth and recovery since the beginning of the year. But according to the latest jobs report, the country is not keeping up with the stated recovery rates and is adding fewer jobs than expected, which means that the cryptocurrency market might receive unexpected benefits from it.
Jobs report role in economics
One of the main indications of the country’s macroeconomic status is the report on the current number of employers, unemployment rates and job growth rates, which are all compiled in one report. According to the report, institutions like the Federal Reserve are able to correct their current rhetorics and strategies.
Positive recovery on the jobs market is also an indication for non-resident investors who are more likely to invest in the country’s economy if the job market is growing. After the latest report, we should expect an increase in the key interest rate and tapering initiation.
How might Bitcoin and crypto benefit?
First and foremost, questionable job statistics in the country directly impact its national currency and have a negative impact on inflation. While investors see increasing inflation in the national currency, they tend to redistribute their funds in order to protect them from it.
Bitcoin and major altcoins sometimes become effective tools that investors add to their portfolios to increase volatility and add more diversity. Though Bitcoin has been actively following the stock market in general, it may still keep more of its value due to its decentralized nature once the Fed initiates the tapering of the market.
Back in February 2020, when traditional markets faced a massive 30-50% crash due to the introduction of the first covid restrictions, Bitcoin reacted with 30% growth, which indicates that cryptocurrency can still remain an alternative way of preserving capital in periods of crisis on traditional financial markets.