Bitcoin manages to break the $50k resistance level.
Nonfarm Payroll data shows that the United States had the worst job performance in the last 7 months yesterday, raising concerns about the Federal Reserve’s bond-buying program, which was to take place this year.
The S&P 500 index exceeded the high of August 31 during yesterday’s session, setting a new All-Time High. But the jobs report, handed over by the federal government on September 3 – caused a decrease of 0.6% due to weak numbers that did not make investors happy. The U.S. economy has added fewer jobs in the last month than expected by the market.
The U.S. Bureau of Labor Statistics reported that the number of jobs increased by 235,000 in August – for less than 733,000 – the number experts expected. In any case, the percentage of people without a job fell from 5.4% to 5.2% in one month.
Bitcoin Surge – Fueled by the Delta variant?
In stark contrast to the average increase of 350,000 jobs per month in the recent six months, the medical sector did not see any growth during August. Meanwhile, the restaurant sector has lost 42,000 jobs due to fears about spreading the Delta variant of the new coronavirus. Bitcoin rose 5.5% during yesterday’s session, anticipating that a slowdown in job growth will cause the Federal Reserve to reduce its bond-buying program.
The world’s most famous cryptocurrency had a more challenging time in the second quarter of this year when the economy was trying to recover from the problems caused by the pandemic. Its price dropped from $65,000 to $30,000 after China banned the mining and holding of digital assets, and Elon Musk changed its positive stance towards Bitcoin.
At the same time, the global economic recovery has drawn speculators’ attention to the fact that central banks will likely withdraw their monetary support. Federal Reserve Chairman Jerome Powell said federals would increase their asset purchase program if the economy reaches a maximum employment rate.
However, the Delta variant seems to be stopping a steady recovery in the economy and the workforce. Moreover, statistics released yesterday in the report indicate that the U.S. Federal Reserve will have to continue with a bonds purchase program of at least $120 billion a month.
This outlook has induced stress and pressure on the U.S. Dollar Index (DXY) and caused assets such as Bitcoin and gold to appreciate.
Bitcoin set at $50,000. US Stock Market in decline. What’s next?
Bitcoin breaking the $50,000 resistance level has shown two essential criteria for digital currency, said Petr Kozyakov, CEO of Mercuryo.
The first of these is that Bitcoin still has what it takes to attract investors and buyers. The second is that the considerable price increase has not reduced the volatility of digital assets.
Kozyakov anticipated that weak monetary policies, coupled with Bitcoin being recognized as a safe haven asset on Wall Street, may lead to an increase to $55,000 in the short term and another to $70,000 in the long term.
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