Bitcoin: A beginning of August undermined by the macro-economy

As bitcoin and other pro-risk assets came out of a month of preference in July, the macro-economy coupled with tense Sino-US relations would bring fear back into the markets.

After having grown by 24.2% during the month of July, Bitcoin had to maintain this performance in order to move completely away from the danger zone, that is to say, that which is below 20 $000. Unfortunately, the cryptocurrency is struggling to regain its July high of $24,666 according to Coinbase data. We even saw it relapse towards $22,392. So, a posteriori, we can say that the asset is paying for itself between $22,000 – $24,000.

However, the movement of the asset within this range will have a considerable impact on its future for the rest of the year. But, for now, bitcoin is only causing the global trend in financial markets which have been cut in their tracks after the IMF downgraded its forecast for global growth, specifically to 3.2%. During the day on Thursday, the Bank of England (BoE) warned investors of the risk of a downturn for the English economy until the end of 2023. The United States could also experience a similar forecast after two quarters of negative growth. .

What if the NFP tipped Bitcoin in August?

Friday’s session coincides with the NFP report day on US employment statistics. Analysts expect the creation of 250,000 jobs against 372,000 in June. Economists also agree that the level of unemployment will remain stable at around 3.6%.

These are only discounts, they may still turn out to be false. As these ultra-important statistics approached, Wall Street reacted rather in ranked order but with rather restrained performances. The Dow Jones fell 0.26% to 32,726.82 points. The SP 500 lost 0.08% to 4,151.94 points while the Nasdaq, which brings together technology stocks, managed to gain 0.41% to 12,720.58 points.

If at the start of the Thursday session, Bitcoin dipped towards $22,392, we notice that it recovered a little and went back up to $23,132. Nevertheless, this slight rise is not a signal of the return of the July rally. Better to wait for the market reaction in the Friday session. While Bitcoin managed to defeat Nancy Pelosi’s trap with flying colors, the same could not be expected for the asset if the NFP statistics turn out to be disappointing.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.

Leave a Comment