This stability may not last for too much longer, as fears are growing that the economy will not be able to post a “V-shaped” recovery due to a slow decline in jobless claims.
If this trend doesn’t shift soon, it could spook investors and lead to a market-wide selloff, likely having grave implications for Bitcoin as well.
Jobless Claims Drops to 1.48 Million, But Still Remain Elevated
According to recent data, jobless claims this week dipped to 1.48 million, down from the previous week’s number of 1.54 million.
There has been a decline in the number of new claims over the past few months, with the shockwaves from the initial shutdowns in March causing this number to peak – as seen in the below chart.
Image Courtesy of MarketWatch
The total unemployment figures still remain incredibly high as well. Until jobless claims decline to their pre-pandemic level in the low-hundred thousands and unemployment rates begin declining as well, an economic rebound seems unlikely.
Because the financial markets – which Bitcoin has become closely tied to – are partially holding steady due to widespread anticipations of the economy seeing a “V-shaped” recovery, it is possible that turbulence will ensue once fears of a lethargic economic rebound start spreading.
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