U.S. Economy's Strength Signals Potential for Bitcoin Growth
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), Yield App chief investment officer Lucas Kiely has argued.
Writing in an opinion piece for Cointelegraph, Kiely highlighted the impressive resilience of the world’s largest economy in the face of challenging circumstances, and suggested that this strength may in fact benefit Bitcoin.
According to Kiely, the strong addition of jobs in September becomes more remarkable when considering the context of rising yields on longer-term Treasury bonds and surging mortgage rates.
This indicates that the economy continues to forge ahead, even as the Federal Reserve enforces tighter monetary policies, Kiely wrote.
The key message from the employment data is the U.S. economy's determination to push forward despite aggressive monetary tightening.
Kiely pointed out that higher interest rates appear to be a long-term feature of the economic landscape, underlining the economy's resilience.
The article suggested that although these developments may make some traditional market investors uneasy, there are broader economic implications to consider.
While traditional stocks might seem less attractive when compared to savings accounts offering a 6% return, there are signs that the bond market's relentless sell-off might be slowing.
A potential end to this sell-off could herald a new bull market for risk assets, Kiely wrote.
The piece further argued that Bitcoin's short-term price movements remain closely tied to regulatory decisions, particularly decisions on whether or not to approve a spot Bitcoin exchange-traded fund (ETF).
Despite positive news regarding spot ETFs,
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