$BTC (+0.23%) is stuck in a summer lull, with unusually low trading volumes making short-term price movements harder to interpret. Daily #bitcoinvolumes currently stand at around $4 billion, with similarly subdued activity in stocks and other risk assets. In this environment, relatively small capital flows can have a disproportionate impact on prices—we advise caution when interpreting daily volatility.
The macroeconomic environment has nevertheless improved. Recent U.S. labor market data were notably weak, with significant downward revisions; the economy added an average of only about 20,000 jobs per month over the past three months. The expected employment boost from the World Cup turned out to be significantly weaker than anticipated. At the same time, the latest inflation reading was largely in line with expectations and is steadily moving closer to the Federal Reserve’s target.
(Author: James Butterfill, CoinShares’ Head of Research)
You can invest in Bitcoin through the following vehicle: $BITC (-1.13%)
