After weeks of reaching new highs, both bitcoin and gold have drawn back a little bit after news has emerged that the United States is doing better in the jobs department than originally anticipated.
Bitcoin Takes a Few Steps Back
Sometimes, it’s necessary to give something up to garner a positive outcome of some kind, and in the case of people’s livelihoods and financial stability, what could be more important? With so many people out of work as of late due to the growing coronavirus pandemic, both BTC and gold pulling back a few hundred dollars thanks to more people landing on their feet is something of a compromise, but it’s still a strong result.
Bitcoin is currently trading for just over $11,500, meaning it’s fallen by roughly $300 in the past 24 hours. Gold has fallen even more. The precious metal is currently trading for just over $2,000 and has dropped from the near $2,100 high it was experiencing earlier this week.
The good news is that the U.S. Labor Department’s non-farm sector suggests that as many as 1.7 to 1.8 million new jobs were added in July. At the time of writing, only 1.6 million were expected, meaning the United States is recovering much faster than what analysts thought would occur, and granted more people are experiencing surges in their wealth and overall stability, the price being paid is likely worth it.
Edward Moya – senior market analyst at OANDA – stated in an interview:
The non-farm payroll report confirmed economic data is plateauing and that the third quarter rebound everyone expected is not happening. The labor market did not deteriorate, and risky assets along with the dollar initially rallied after the upward surprise in payrolls. Many traders were expecting a possible negative print, but that pessimism will only move to next month as that report will include much of the slowdown that stemmed from the virus resurgence in the second-wave states.
More People Seem to Be Working
Despite the good news, unemployment in the United States still exceeds ten percent, though this is still considerably stronger than the predicted 20 percent figure that was reported during the initial virus spike. This suggests that roughly half of the unemployed people within the country have managed to find new positions in the last few months.
In addition, we are also privy to further resilience from the likes of bitcoin and gold. BTC has only fallen a few hundred dollars following this news, which means that its suffering is relatively slight. Lastly, it’s always good to hear that the U.S. dollar is rallying. While dips in USD ultimately help bitcoin to grow further, the dollar is still a widely used form of fiat across the globe, and its instability could spell further economic problems for the U.S. and abroad.