Cryptocurrency industry may benefit from American unemployment — Fed

The day that cryptocurrency experts called the most important of the week has arrived. The U.S. Department of Labor released statistics on unemployment claims. Over the past seven days, the number of requests has increased by as much as 26,000. Many experts note that this indicates an extremely unstable situation in the US labor market, which may continue to regress. However, officials suggest that these problems may create favorable conditions for the development of the cryptocurrency industry.

Previously, a stable labor market was more of a trump card for the Fed, as the agency could tighten monetary policy without fear of a negative impact on the country’s economy as a whole. But it seems that the situation is beginning to change rapidly. According to experts, if the unemployment situation in the US continues to deteriorate, the US regulator will have to ease monetary policy. This, in turn, will have a positive impact on the cryptocurrency market and we can expect that the crypto winter will finally begin to recede.

Meanwhile, the United Nations and the World Bank are sounding the alarm and warning regulators about the rapid decline of the global economy. It should also be remembered that midterm elections to the US Congress will soon be held, so the Fed’s rhetoric is causing more and more dissatisfaction among many American officials. Thus, Senator Elizabeth Warren of Massachusetts, a Democrat, criticizes the actions of the Federal Reserve and the statements on cryptocurrency regulation policy from the head of the department, Jerome Powell. According to the official, the Fed will not be able to maneuver between rising unemployment in the US and lower inflation in the country.

In general, market experts are divided into two camps in their opinions on the future of the industry. Some predict rapid growth of the main cryptocurrency BTC and altcoins despite the tense geopolitical and difficult economic situation in the US and the world. Other analysts predict a protracted crisis for the industry. Skeptics point out that the crypto winter will not go away in the next few years, and this will significantly affect the exchange rate of cryptocurrencies from the top 100 list.