The recent resilience of the US economy, as demonstrated by the unexpected addition of 336,000 jobs in September, might hold positive implications for the growth of Bitcoin (BTC), according to Yield App chief investment officer Lucas Kiely. In an opinion piece for Cointelegraph, Kiely emphasized the impressive strength of the world’s largest economy despite challenging circumstances, suggesting that this resilience could benefit Bitcoin.
The Strength of the US Economy
Kiely highlighted the significant addition of jobs in September, which becomes even more remarkable when considering the context of rising yields on longer-term Treasury bonds and surging mortgage rates. Despite tighter monetary policies enforced by the Federal Reserve, the economy continues to forge ahead. Kiely stated, “The key message from the employment data is the U.S. economy’s determination to push forward despite aggressive monetary tightening.”
Furthermore, Kiely pointed out that higher interest rates seem to be a long-term feature of the economic landscape, underscoring the economy’s resilience. While this may make traditional market investors uneasy, the article suggested that there are broader economic implications to consider.
Potential Implications for Bitcoin
Although Bitcoin’s short-term price movements are closely tied to regulatory decisions, particularly those regarding the approval of a spot Bitcoin exchange-traded fund (ETF), positive news in this regard has not had a substantial impact on Bitcoin’s price. However, Kiely’s analysis suggests that the approval of a Bitcoin spot ETF could trigger significant inflows into the cryptocurrency, potentially leading to a resurgence in the broader crypto market.
The article also acknowledged the crucial role of the Federal Reserve in shaping the trajectory of risk assets. If the Fed halts its rate hikes and instead signals an impending rate cut, this decision could stimulate expectations of a substantial risk-on rally across various asset classes, including cryptocurrencies.
“A potential end to this sell-off could herald a new bull market for risk assets,” Kiely wrote.
In conclusion, Kiely’s analysis suggests that the resilience of the US economy, along with regulatory and monetary policy decisions, has the potential to impact the growth and performance of Bitcoin. As the economy continues to thrive and adapt to changing circumstances, it sets the stage for potential opportunities and developments in the cryptocurrency market.
