Treasury Secretary Janet Yellen Bets on US Economy Recovery, Will Bitcoin (BTC) Follow?
2024-09-08

Recently, Janet Yellen, the Treasury secretary, expressed her faith in the U.S. economy's recovery, pointing out that the recent cooling jobs data indicates a soft landing as opposed to an approaching recession. Yellen is still upbeat despite August's nonfarm payroll growth of 142,000, which was less than anticipated but nevertheless positive, and unemployment at 4.2%.
She made it clear that the U.S. claims that there are not any large layoffs occurring and that the economy is deeply into a recovery. For cryptocurrencies like Bitcoin and others, this poses a crucial question: Will the strengthening U.S. influence Bitcoin's performance or might it cause people to pay less attention to alternative assets like BTC?BTCUSDT Chart by TradingView
The chart for Bitcoin indicates a decline toward $54,573, but its recent performance has been inconsistent. Since data on inflation and job growth affect market sentiment, Bitcoin has been finding it difficult to gain traction.
Bitcoin has historically profited from economic turbulence because investors use it as a store of value or as a hedge against inflation. Still, the story could be altered by the economy. The appeal of alternative assets like Bitcoin may decline if the economy keeps improving, especially with a robust labor market and decreasing inflation.
Short-term BTC growth may be slowed by investors' increased comfort in established markets. In addition, there may be cause for concern given the recent decline in nonfarm payroll data and the worst week for the S&P 500 since March 2023, however, these events may also portend a return to riskier assets once the economy stabilizes.
Nevertheless, Bitcoin might see a comeback if Yellen's bullish forecast proves to be overly optimistic, if inflationary pressures reappear or the economy contracts. It continues to be appealing as a decentralized asset to people who are not fans of centralized economic systems.