Chapter Table

  • Despite monetary tightening, the economy advances
  • Regulation continues to influence the price of bitcoin.

According to Lucas Kiely, chief investment officer at Yield App, the recent resiliency of the US economy, as seen by the unexpected creation of 336,000 jobs in September, may have favorable effects on the development of bitcoin (BTC).

In an editorial post for cointelegraph, kiely emphasized the world's largest economy's remarkable resiliency in the face of adverse conditions and proposed that this strength may in fact be advantageous to Bitcoin.

Considering the background of rising yields on longer-term Treasury bonds and rising mortgage rates, according to Kiely, makes the September's strong job growth even more impressive.

According to Kiely, this shows that the economy is still expanding despite the Federal Reserve's stricter monetary policies.

Despite monetary tightening, the economy advances
The employment data's main takeaway is that the U.S. economy is committed to growing despite strong monetary tightening.

Kiely emphasized the economy's resiliency by pointing out that rising interest rates appear to be a long-term aspect of the economic environment.

Although these trends might unnerve some traditional market participants, the article argued that there are wider economic ramifications to take into account.

Traditional equities may appear less appealing when compared to savings accounts that yield a 6% return, but there are indications that the unrelenting sell-off in the bond market may be moderating.

Bitcoin's price is still influenced by governmental choices

The article further suggested that choices made by regulators, particularly those pertaining to whether or not to authorize a spot Bitcoin exchange-traded fund (ETF), continue to have a significant impact on the short-term price swings of Bitcoin.

Bitcoin's price has mainly remained stable despite good news about spot ETFs.
According to Kiely's estimate, the introduction of a Bitcoin spot ETF might result in huge investment flows into Bitcoin, perhaps igniting a broader cryptocurrency market upswing.

The article went on to say that the Federal Reserve has a significant role in determining the trajectory of risk assets, and it was indicated that if the Fed stops raising interest rates, this action would lead to predictions of an impending rate decrease.

According to him, this may then pave the way for a big risk-on surge across several asset classes, including cryptocurrency.

DISCLAIMER: We don't provide any investment advice.