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The latest unemployment figures may mean nothing to Bitcoin

May 22, 2020

More than two million Americans applied for unemployment benefits for the first time last week, which may or may not affect Bitcoin.

CNBC saw a 2.44 million new jobless claim decline for the seventh consecutive week, CNBC said in a May 21 report. However, these numbers meet the expectations of economists.

To date, Americans have registered 38.6 million unemployment claims within the corona virus timeframe, CNBC said.

Pompliano expresses the need to reopen

The latest unemployment figures may mean nothing to Bitcoin
The latest unemployment figures may mean nothing to Bitcoin

The co-founder and partner of Morgan Creek Digital commented on a national reopening after weeks of closing and ordering accommodations that have increased job loss.

“We have to open the economy and let people work safely” said Pompliano in a tweet dated May 21 stating the latest unemployment figures.

The Bitcoin connection or not

Do Recent Job Loss Figures Affect Bitcoin? Possibly. On the one hand, people with tight financial levels are logically more likely to pay bills and have cash for the next few days of uncertainty than bitcoin, a speculative and highly volatile asset.

A recent Business Insider article showed an increase in US bank savings. Since the beginning of the corona virus period, lending to the theory of saving money versus buying Bitcoin.

In contrast, people may be in the midst of seeking wealth storage outside the government system as inflation in US dollars threatens to rise. Some people report looking for gold as a hedge in uncertain times, although many have represented Bitcoin in a similar way.

Pompliano repeatedly called Bitcoin a hedge. In addition, cryptocurrency exchange has also increased in recent months, though arguments for both parties, buying Bitcoin or holding cash, will only show where people will go in the next few days.

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