Bitcoin price demonstrated resilience to economic uncertainty over the past week, while markets in the US plunged and struggled to recover.
In May, various sources revealed that the US only added 138,000 jobs, dipping significantly lower than the expected number. On average, the unemployment rate fell to 4.3 percent, declining to a 16-year low.
Diane Swonk, a Chicago-based economist, said in an interview:
“The overall report still leaves the Fed on target for June, but it underscores their trepidation about moving in December. They’ve got good reason to be cautious.”
Almost immediately after the disclosure of the May jobs report, US markets including S&P 500 Futures and the USD Index plunged, falling from around 3.6 percent to 0.8 percent.
This is what an uncorrelated asset looks like when the jobs number rattles financial markets #bitcoin –> pic.twitter.com/pf6henU4qK
— Brian Kelly (@BKBrianKelly) June 2, 2017
Bitcoin price maintains upward trend
Despite the significant fall of the US market, Bitcoin price maintained its upward trend, completely recovering from last week’s major price correction. In late May, Bitcoin price fell from $2,600 to $1,900. Since then, Bitcoin price has recovered, bouncing back into the $2,600 region.
Bitcoin price stabilizes at $2,600 today, almost fully recovers from last week’s correction. Japan & China leading trading.#bitcoinpic.twitter.com/eBxjVkOt9p
— Joseph Young (@iamjosephyoung) June 5, 2017
On today’s peak, Bitcoin price hit $2,626, recording a new weekly high and moving closer to the current all-time high price established at $2,712 based on the global average Bitcoin price index.
Important points and driving factors of Bitcoin price to consider is the recovery of the Chinese Bitcoin exchange market. Only a month ago, the daily trading volume and market share of the Chinese Bitcoin exchange market was lower than that of the South Korean exchange market.
Today, China accounts for 18.6 percent of the global Bitcoin exchange market, processing around $100 mln worth of Bitcoin trades on a daily basis.
The Japanese Bitcoin exchange market also made a strong comeback after falling behind the South Korean Bitcoin exchange market earlier last week. Japan’s largest forex market and major multi-billion dollar conglomerate opened a Bitcoin exchange, which further increased the demand of local investors toward Bitcoin.