TL;DR
-
Bitcoin just got a double dose of ‘positive price-movement fuel.’
-
The first was Grayscale’s win over the SEC, yesterday. The second was the news that job openings are drying up in the US. Which sounds like bad news (and it is) – but it’s also fueling Bitcoin’s upward price movement.
-
As a result of the above news, investors are preemptively buying Bitcoin in the hopes it will thrive in the coming months.
Full Story
Good news: we have bad news…which is, in turn, good news.
Confused? Same. Here’s what we’re on about…
Bitcoin just got a double dose of ‘positive price-movement fuel.’
The first was Grayscale’s win over the SEC, yesterday.
The second was the news that job openings are drying up in the US. Which sounds like bad news (and it is) – but it’s also fueling Bitcoin’s upward price movement.
Here’s why:
The Federal Reserve has been on a war path with inflation this past year, raising interest rates at an almost constant pace.
The idea being…
Interest rates go up → folks have to spend more paying off their credit/loans → they have less to spend on living → businesses lower their prices to keep sales up → inflation slows → we all live happily ever after.
Now…one thing the Fed looks at when trying to trace the effects of their interest rate hikes is job availability.
If there’re a bunch of jobs on offer, it means businesses have money to spend, and if they have money to spend, it means these interest rate hikes aren’t putting enough pressure on the economy to lower spending/inflation.
But! Job openings are drying up (that’s the bad news). Which means the Fed has less incentive to raise rates any further (that’s the good news).
If rates stop climbing (or better yet: go down), this means people will have more money to spend on non-essentials, like Bitcoin.
As a result of that (and the Grayscale news), investors are preemptively buying Bitcoin in the hopes it will thrive in the coming months.
What a week!
