University of Michigan: Consumer Sentiment Hasn’t Been This High in 15 Years, Bitcoin to Thank?
- Consumer sentiment level rises by over 17x what analysts expected.
- Bitcoin’s price increase changes coincide with consumer confidence.
The University of Michigan released their data from the consumer's sentiment index, and there are a lot of individuals that are surprised by the results. Most notably, the data revealed that the consumer sentiment in the United States has reached 102.4 for May 2019. Just last month, the consumer sentiment was 97.2.
Based on this information, it looks like the majority of the American public has an optimistic view of the economy and appear to have the same mentality about the rest of the year. Economists originally thought that May would only reach 97.5 for consumer sentiment, only to see the number rise by more than 17x the increase expected. The last time that the levels reached this height was at 2004.
Analysts are warning the public of the potential for this tide to change, considering the recent escalation of the US-China trade war that could harm the confidence that consumers have now. Last week, US President Donald Trump decided to increase the tariffs on $200 billion of Chinese goods by 25%, and China followed their lead on $60 billion of American goods. The next installment of the index will not happen until next month, which is when it will reflect the impact of these decisions.
Some data on this index has been interpreted to mean that Bitcoin is seeing a lot of the benefit of the increase in consumer confidence. Along with the new revenue that has worked its way to the cryptocurrency market, Bitcoin managed to get into the retail market in a big way, allowing consumers to use Bitcoin, Ethereum (ETH), and other major cryptocurrencies in their shopping days.
Bitcoin needs to capitalize on consumer confidence while it lasts, showing how accessible it is as an investment tool. Cryptocurrency, as a market, greatly benefits from high consumer confidence, which is not like the traditional market is at all. Bitcoin proponents should take these levels into account when they are deciding on where they want to invest their funds. Though it is often hard to predict the market, consumer confidence is an easy way to figure out what to expect in price movement.