TL;DR
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Yesterday, during an event in Madrid on financial stability (riveting event), US Fed Chairman Jerome Powell announced that the number of applications for unemployment benefits in the US fell in the past quarter, while productivity increased.
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In other words, people are starting to see the value of BTC for what it is – a decentralized, deflationary store of value – and it is becoming less and less correlated with news about the traditional financial system.
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Or, maybe this is just too short a time frame to look at, and news about TradFi companies recently applying for BTC ETFs outweighs the positive news about the US economy.
Full story
Yesterday, during an event in Madrid on financial stability (riveting event), US Fed Chairman Jerome Powell announced that the number of applications for unemployment benefits in the US fell in the past quarter, while productivity increased.
Sounds good! What does that mean?
When fewer people lose their jobs in the US, the number of claims for unemployment benefits decreases.
If productivity rises in the US, it’s a good sign for the economy: good days.
Historically, when either (but only both) of the above happens, the price of BTC falls; because BTC is often seen as a hedge against US dollar inflation.
BUT, what happened to the price of BTC yesterday? It stayed pretty much the same (in fact it increased by ~1%).
What is the take away?
There are two possible explanations:
In other words, people are starting to see the value of BTC for what it is – a decentralized, deflationary store of value – and it is becoming less and less correlated with news about the traditional financial system.
Or, maybe this is just too short a time frame to look at, and news about TradFi companies recently applying for BTC ETFs outweighs the positive news about the US economy.
Anyway, we like to take a long-term view of BTC and Web3 as a whole.
At the moment, while the reading may be 50%+ below its all-time high, we like what we’re seeing.
