We're living in scary times now. There's a head hunting virus moving around, so we can't move around, and that has led to a lot of layoffs in the past few weeks.

In fact, the US recorded its highest unemployment rate number, with over 6.6million US citizens unemployed at the moment.

If you've looked at a news article lately, you're already on track. We proceed.

But of course, while this unemployment rate thing affects the general economy of the US, could it possibly affect the crypto industry?

Yes. A big, fat, giant yes.

Here's why.

You see, when people are unemployed, they tend to lack the magic elixir that keeps us all going. That's right. They tend to lack money.

In a bid to, you know, survive, they tend to look for other sources of income. If they're unsuccessful in their search, they tend to liquidate their investments to keep up until they find another job.

And for an example of this, look no further than the crash of a few months ago. The virus hadn't become as bad as this, but as people anticipated a lockdown, they proceeded to liquidate their crypto, gold and commodity assets to prepare for the coming trauma.

And this is a pattern common with most retail traders. They aren't profitable anyway, so what's the point of having the money sitting there?

That leads to the development of a seller's market, and Economics 101 states that when there is a surplus of sellers of a commodity, with an inadequate number of buyers, the price of the commodity tends to fall. Very badly.

So the unemployment rate could severely affect the crypto industry, as most people are likely to liquidate their assets.

But many analysts say that there's a silver lining, in that people would like to learn crypto trading and become better traders so they can live off it. This is another angle to look at the problem from, and it's a good one too.

Only time would tell the real effect.

Thanks for reading.