Bitcoin - BTC is recognized as a hedge against inflation because its value has risen over time.
The economist Iván Carrino explained that the increase in interest rates in the United States to counteract inflation drives the fall of bitcoin. Likewise, he warns that when these fall, this asset rises in price, as happened last year. And he points out that the same effect generates on stocks, bonds and the rest of the cryptocurrencies.
Surpassing the increase in prices of products and services.
Carrino comments that the decision of the United States Federal Reserve - Fed to raise interest rates comes as a consequence of inflation fueled by the aggressive reduction in rates at the most complicated moment of the pandemic.
With these economic policies, the Federal Reserve is disarming all that monetary impulse.
Bitcoin Price Can't Do Well With Fed Actions, Economist Believes
The crypto winter and the downtrend for the stock market will continue for a while longer.
Investors find bitcoin, as well as the rest of the cryptocurrencies and the stock market, as a risky investment due to its price volatility. Faced with this scenario, they tend to move away.
There is currently no strong demand seen in bitcoin. Although in the middle of this crypto winter it gets price increases.
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