Recent Unemployment Numbers Might Not Mean Anything for Bitcoin

More than two million Americans requested unemployment compensation for the first time last week, which may or may not affect Bitcoin. 

Recording its seventh consecutive week of decline, last week hosted 2.44 million new unemployment claims, CNBC said in a May 21 brief. These numbers, however, fall within range of economist expectations.

Within the timeframe surrounding coronavirus, Americans have posted 38.6 million jobless claims to date, CNBC said. 

Pompliano expresses reopening need

Morgan Creek Digital co-founder and partner expressed a push of sentiment favoring a national reopening after weeks of business closures and shelter-in-place orders, which have increased job loss numbers. 

"We have to get the economy open and put people back to work safely," Pompliano said in May 21 Tweet citing recent unemployment numbers.

The Bitcoin connection, or not

Do the recent job loss numbers affect Bitcoin? Possibly. On one hand, people with stressed financial levels may logically be more concerned with paying bills and holding cash on hand for the coming days of uncertainty — rather than spending on Bitcoin, a speculative and highly volatile asset. 

A recent article from Business Insider showed an increase in U.S. bank-based savings since the beginning of the coronavirus period, lending to the theory of cash savings versus Bitcoin purchasing. 

In contrast, however, people may find themselves in the midst of searching for wealth storage outside the government system as U.S. dollar inflation fears rise. Some folks reportedly look to gold as a hedge during uncertain times, although many have made a similar case for Bitcoin.  

Pompliano called Bitcoin a hedge on a number of occasions. Additionally, crypto exchanges have also seen increased activity at time in recent months, although, with arguments for both sides — Bitcoin buying or cash holding — only the coming days will tell where people will turn.