U.Today – Recently, Treasury Secretary Janet Yellen expressed faith in the recovery of the US economy, noting that recent data on cooling employment indicate a soft landing rather than an imminent recession. Yellen remains optimistic despite the lower-than-expected but still positive growth in nonfarm payrolls in August of 142,000 and unemployment at 4.2%.
He made it clear that the US claims that there are no major layoffs taking place and that the economy is in the midst of a recovery. For cryptocurrencies like Bitcoin and others, this raises a crucial question: will the strengthening of the US influence Bitcoin's performance or could it cause people to pay less attention to alternative assets like BTC?
Bitcoin’s chart indicates a drop towards $54,573, but its recent performance has been inconsistent. With data on inflation and job growth affecting market sentiment, Bitcoin has found it difficult to gain ground.
Bitcoin has historically benefited from economic turmoil because investors use it as a store of value or hedge against inflation. However, the story could be altered by the economy. The appeal of alternative assets like Bitcoin may diminish if the economy continues to improve, especially with a strong labor market and declining inflation.
BTC’s short-term growth may be held back by increased investor comfort in established markets. Additionally, there may be cause for concern given the recent decline in non-farm payrolls data and the worst week for the S&P 500 since March 2023; however, these events may also herald a return to riskier assets once the economy stabilizes.
However, Bitcoin could return to normal if Yellen's bullish forecast turns out to be too optimistic, if inflationary pressures reappear, or if the economy contracts. It remains attractive as a decentralized asset for those who are not fans of centralized economic systems.
This article was originally published on U.Today
