Will higher interest rates have an impact on the bitcoin price?
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Answer Will higher interest rates have an impact on the bitcoin price?
With an overview of the economic sectors as a whole, we can clearly see the influence of each other.
Recently, on the “Bloomberg” channel, Mr. Harry Yeh, founder of the Quantum Fintech Group, stated that raising interest rates would not necessarily be bad for Bitcoin.
Harry believes that Bitcoin serves as a hedge against inflation and benefits greatly from the depreciation of the dollar. He added, explaining:
The more money is printed, the more bitcoin is worth, but I think the process is reversed.
I don’t think the value of bitcoin is going up, it’s the dollar that is losing value.
Bitcoin reclaimed the $49,000 level after the Federal Reserve announced that interest rates would remain untouched.Read:Poloniex users lose $13.5 million after a sudden drop
Up to three interest rate hikes are expected in the coming months and years, according to analysts.
The Fed also decided to speed up the tapering process by reducing bond purchases.
Some market analysts also believe that this will not bode well for cryptocurrencies and other risky assets, whose prices are believed to have risen due to more money being printed.
Currently Bitcoin is trading below the $50K level, with bulls trying to make a convincing breakout.
When asked about the ongoing correction of Bitcoin and other risky assets, Harry noted that the major cryptocurrency tends to move in tandem, and the fact that volatility is often used by crypto critics as a weapon against it.
He trades bitcoin and is constantly following technology stocks.
Hedge fund manager Brian Kelly recently predicted that both Bitcoin and the Nasdaq would start trading higher starting in 2022.
He also said that it is definitely important for crypto to be part of an investor’s portfolio.
He also points out that investors can easily buy a small portion of cryptocurrencies, but buying shares usually requires a large amount of money (except for platforms like Robinhood).Read:New update on the Tether case with the New York Attorney General’s office… Details here
He also sees payments and remittances as the biggest use case for cryptocurrencies.
Where, unlike traditional financial institutions, cryptocurrencies are accessible 24/7.
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