Rising unemployment in America has caused the dollar index to fall. And, as often, we see that Bitcoin makes nice profits.
A weakening dollar is good news for Bitcoin investors
Bitcoin price is up more than 10% today, bringing the price back above $47,000. The price increase is due to the fact that the US dollar is falling again after reaching its highest point in a year. Bitcoin’s inverse correlation to the dollar suggests that a weakening dollar could push the BTC price further up in the coming days.
Dollar falls after poor labor market figures
The dollar has performed extremely well in recent times. This is how the US Dollar Index reached (an index that measures the currency’s strength against other currencies) Thursday for the first time since September 28, 2020 the 94.50 points. However, the recent rising unemployment figures are now throwing a spanner in the works.
Released from Thursday employment data shows that unemployment benefit claims rose to 362,000 last week, from 351,000 a week earlier and against economists’ forecast of 333,000. As a result, the number of repeat applications remained at around 2.8 million for five weeks in a row.
According to several analysts, this news could mean that the Federal Reserve will postpone the unwinding of the huge support package.
The disappointing jobs report could boost investor demand for Bitcoin. The dollar’s weakness and devaluation against rising inflation could cause investors to stick their excess cash in crypto markets.