According to the United States Commerce Department’s monthly retail sales report released a few days ago, retail sales have seen a stark decline in recent weeks. Meanwhile, the cryptocurrency markets have been booming.
Despite a 1.7 percent jump in sales figure back in March, retail sales have fallen by 0.2 percent in April — indicating a stark change in consumer interest. Additionally, economic pressure continues to mount as car sales dropped by 1.1 percent, while electronics and appliances have also dropped by 1.3 percent. Beyond that, sales figures for clothing and textile markets as well as home and garden supply markets have dropped by 0.2 percent and 1.9 percent respectively.
Experts fear that this could be the tentative signs of an impending market downturn that could lead to the next economic recession. This has caused cutting back national GDP growth estimates for the fourth quarter of this fiscal year.
Slumping Market Growth, Boosted Bitcoin
For the general public, store owners, and everyone else affected by this slump in market growth, simply assuming that the declining revenues would bottom out and start rising again may not be the most suitable plan. If an economic downturn is indeed impending, the public may need to be more proactive when looking for alternative means to boost and sustain their wealth. One potential opportunity may be in cryptocurrencies.
In the past several months, the cryptocurrency markets have witnessed an impressive recovery, with Bitcoin (BTC) clocking well over 100 percent growth against the US dollar since the beginning of 2019.
If this wasn’t already impressive, these gains could be signaling the beginning of a major market upturn. According to longtime crypto-traders and cryptocurrency experts, Bitcoin could be worth as much as 25 percent more in the next few months as it closes in on the $10,000 resistance level.
This could have far-reaching effects for the entire cryptocurrency economy — since other digital assets often surge after Bitcoin does. The market has already begun to see this effect, with all major altcoins, including Ethereum (ETH), Ripple (XRP) and EOS all seeing huge growth in the last month.
Early Bitcoin Adopters
Whether it is a small business owner, multi-chain store, large manufacturer, or the average American consumer, the crypto-economy may just be the lifeboat needed to help sail through the harsh waters of a potential recession.
However, though the cryptocurrency economy could be seen as an attractive way to hedge against what is arguably a failing traditional economy, it is estimated that just five percent of Americans hold Bitcoin, despite close to 80 percent of people having some knowledge about cryptocurrencies.
What do you think is causing the slump in retail sales? Is another economic recession looming? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock.