Cryptocurrency analyst Benjamin Cowen thinks the US unemployment rate could be a big deal for Bitcoin’s price. He’s telling his YouTube followers that if the unemployment rate keeps climbing, Bitcoin might stay in a slump for the rest of the year.
A Historical Pattern?
Cowen says there’s a historical connection between unemployment and how risky investments perform. He points to the year 2000 and the 1990s, saying that when unemployment went up, the stock market and other risky assets also struggled.
He’s worried that if unemployment hits 4.8% or 4.9% by the end of the year, Bitcoin could stay stuck below its recent highs.
Deja Vu?
Cowen also sees similarities between Bitcoin’s current performance and what happened in 2019. Back then, Bitcoin’s price kept falling, making lower highs and lower lows, before finally breaking out.
He thinks this pattern could repeat itself, and the labor market will be the key to whether Bitcoin breaks out of its slump.
Don’t Dismiss the Unemployment Rate
Cowen warns that people shouldn’t ignore the unemployment rate. He says that many people who dismissed its importance in the past were also surprised by Bitcoin’s big price drop earlier this year.
Bitcoin is currently trading at $63,331, down about 3% in the last 24 hours.
