New data collected by the Zero Hedge website suggests that almost all of the excess savings that were accumulated during the Covid-19 pandemic period by consumers in the United States has already been spent. According to a report by Zero Hedge, it appears that US consumers they may have already burned off most of their excess savings, and that moment could correlate with the deceleration in the price of Bitcoin. This “economy excess” came about during the pandemic for a number of reasons. One is that, as people now had to stay at home, they could not participate in many of the outside activities, and ended up spending less, in theory. This saved money would, in theory, be reallocated to the economy, since almost all the money that people would spend going out, eating in restaurants, etc., would only be accumulated as savings. However, many people have had to consume their savings due to unemployment or other such factors. So these “excessive savings”, of course, were not significant enough. In other cases, people ran into multiple debts during this period. Before Covid, the data showed savings of about $1.3 trillion. This figure increased to about $2.5 trillion on average for the period that featured the stimulus checks (which, by coincidence or not, also relates to the last big Bitcoin bull run). Consumers received the last stimulus check in March. Interestingly, at the same time as the peak of Bitcoin prices in the year.Today, the excess savings are only about US$1.7 billion. While the figure is still $400 billion more than the pre-Covid figure, that surplus could disappear in August if you base it on the rate that US consumers are spending, according to Zero Hedge. this level of savings and this big rise in the price of Bitcoin may still be, in fact, immersed in current prices, as with large amounts saved, people can invest more freely in assets like cryptocurrencies. starts to become scarce, that will no longer be possible. During this period, it is possible to see a downturn in the economy and in various assets, as investors often need to dispose of some positions in order to have more cash available. Translated and adapted from Bitcoinist: Is A Lack Of Savings To Blame For Bitcoin Slowdown?Click to rate this post!
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Bitcoin market releases trading of eight new football and Formula 1 tokens
The Bitcoin Market announced that as of Tuesday (3), eight new fan tokens — digital assets linked to sports groups — will be made available on its trading platform. There are five cryptocurrencies from football clubs, two from Formula 1 teams and one from a fighting team. Prices range from […]
