- CoinShares sees that Bitcoin will rally amid economic recession.
- In particular, BTC will benefit from increasing interest rates and a weak dollar.
- The firm considers BTC as a “good insurance policy” amid the market uncertainty.
CoinShares, a pioneer in digital asset investing, believes that the recession in the United States could lead Bitcoin into a bullish trend.
Read CRYPTONEWSLAND on
google news
In a Twitter thread post, CoinShares expound how the meeting of economic factors and government policy decisions are going to benefit Bitcoin, specifically in terms of its performance as the US enters the recession.
The digital asset management firm predicts that Bitcoin will rally if the FED fights back the inflation and if the dollar loses its strength. In addition, CoinShares hinted that the growth of equities would further decline if the condition of the economy gets worse.
While Bitcoin’s price performance has been weak in facing the interest hikes of the FED, CoinShares stated that this weak performance will not last long. The FED has raised the interest rates four times already this year alone. However, the firm claims that the price of Bitcoin will drift from growth equities.
The recent study was shared two months ago after Coinshare weighed how the recession would affect Bitcoin’s price outlook.
According to the blog post, the price of Bitcoin has been influenced by the increasing oil price, the recent commotion in the crypto markets, FED’s interest rates hikes, and the strength of US dollar. However, Bitcoin has developed a “well-established inverse correlation to the US dollar,” as per the publication.
CoinShares considered Bitcoin as “both a growth asset and an emerging store of value,” and foreseen that the relative similarities of the largest cryptocurrency to equities will eventually drop over time.
In conclusion, the firm believes that Bitcoin will be a “good insurance policy” amid this “monetary policy mess.”
Recommended News :
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
