Bitcoin has once again soared past the $68,000 threshold, however, its stability above this level remains uncertain. The latest US economic figures present a favorable outlook. In the past day, the crypto market has seen major developments, with memecoins like SHIB and DOGE experiencing price surges, and FLOKI notably jumping by 70%.
US Unemployment and Inflation Impact on Crypto Market
The US unemployment rate has edged down to 3.9%, close to the 4% mark. This metric, coupled with positive wage growth, hints at a potentially faster-than-anticipated easing by the Federal Reserve. The upcoming inflation data is crucial and could positively influence the market, potentially leading to a surge in cryptocurrency prices before the next Fed meeting.
BlackRock Shows Interest in Bitcoin ETFs
Financial giant BlackRock is setting its sights on Bitcoin ETFs, specifically for its Global Allocation Fund. An amended filing reveals that BlackRock’s fund may invest in various ETFs, including those holding actual Bitcoin, like the iShares Bitcoin Trust. This move signifies BlackRock’s growing confidence in Bitcoin’s trajectory. The Global Allocation Fund, with a diverse portfolio and $17.8 billion in assets, showcases the firm’s strategic interest in cryptocurrency ETFs.
Federal Reserve Chairman Addresses Digital Currency Concerns
Jerome Powell, facing critical feedback regarding central bank digital currencies (CBDCs), clarified that the US is not yet ready for such a development. Political figures have raised privacy concerns, suggesting that a digital dollar could be detrimental to citizens’ interests. Additionally, Powell responded to fears about government surveillance of transactions, referencing China’s Digital Yuan, by assuring that the US would not support a system that infringes on transactional privacy.
In the political arena, Donald Trump’s chances of securing the Republican nomination for the upcoming elections are almost certain. The market, economists, and political analysts alike are closely monitoring these developments for their potential impact on the future of both the economy and the cryptocurrency sector.