Bitcoin dropped by just around 1 percent to trade around $29.9k on Friday despite the US unemployment claims coming in lower than expected.
The Bitcoin (BTC) market was arguably less concerned with the high-impact news from the United States Department of Labor regarding the unemployment claims on Thursday. Notably, the United States unemployment claims came in at 228k, which was lower than the previous and forecasted by a significant margin. As the US dollar currency index (DXY) showed some slight improvement compared to other global currencies, Bitcoin price too was slightly impacted by dropping about 1 percent in the past 24 hours. However, experts believe the Bitcoin market is facing a bigger challenge from the rising altcoin market, especially after the SEC vs Ripple judgment ruling.
Impact of US Unemployment Claims on Bitcoin and Altcoin Market
Moreover, the TOTAL3 market cap, which represents altcoins excluding Ethereum, had its macro wedge breakout confirmed in the past few days. Essentially, crypto cash flow is expected to move from Bitcoin and Ethereum to lower and medium-cap altcoins in the coming weeks.
Meanwhile, the Fed’s policies in fighting high inflation seem to be playing out in favor of the dollar. Economists highly anticipated the Fed raising the interest rates by 25 basis points on July 26 in a bid to further fight inflation.
In a bid to counter the rise of digital assets and the high demand from institutional investors, the United States Federal Reserve announced the launch of FedNow, an instant payment service. Reportedly, more than 35 banks have enlisted to the FedNow services with thousands more expected to join later.
“Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid,” Fed Chair Jerome Powell said.
The Bitcoin market continued to flex its muscles against most global assets amid heightened demand from institutional investors. In the past few weeks, several fund managers led by BlackRock Inc (NYSE: BLK), and Valkyrie, have filed for a Bitcoin ETF, with the SEC expected to either approve, deny, or delay one filed by Cathie Wood’s Ark Invest. In a recent interview, BlackRock CEO of BlackRock described Bitcoin as digitizing gold and its mainstream adoption is imminent.
Notably, the Bitcoin market capitalization is about $580 billion compared to that of gold at nearly $11 trillion. Interestingly, US presidential candidate Robert F. Kennedy, Jr has promised to back the greenback with Bitcoin if elected for the highest office next year. Notably, Kennedy has also indicated that the digital dollar will not happen under his watch.
Meanwhile, the cryptocurrency market remains an integral part of the investment industry not only in the United States but around the world.