TL;DR
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Yesterday, at an event in Madrid on financial stability (riveting event), US Fed Chair, Jerome Powell, announced that the number of jobless claims in the US has dipped in the last quarter, while productivity has risen.
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Either: People are starting to see the value of BTC for what it is – a decentralized, deflationary, store of value – and it’s becoming less and less correlated with news about the traditional financial system.
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Or: Maybe this is just too short of a timeframe to look at, and the news about TradFi companies filing for BTC ETFs of late outweighs the positive news about the US economy.
Full Story
Yesterday, at an event in Madrid on financial stability (riveting event), US Fed Chair, Jerome Powell, announced that the number of jobless claims in the US has dipped in the last quarter, while productivity has risen.
Sounds good! What’s that mean?
When less people in the US lose their jobs, the number of jobless claims decreases.
When productivity rises in the US, it’s a great sign for the economy – happy days.
Historically, when either (yet alone both) of the above happens, the price of BTC drops; because BTC is often seen as a hedge against inflation of the US dollar.
BUT, what happened to the price of BTC yesterday? It stayed pretty much the same (in fact it increased by ~1%).
What’s the take away?
There are two possible explanations:
Either: People are starting to see the value of BTC for what it is – a decentralized, deflationary, store of value – and it’s becoming less and less correlated with news about the traditional financial system.
Or: Maybe this is just too short of a timeframe to look at, and the news about TradFi companies filing for BTC ETFs of late outweighs the positive news about the US economy.
Either way, we like to take a long term view of BTC and Web3 as a whole.
Right now, while the value might be 50%+ less than it’s all time high, we like what we see.
