Bitcoin is a cryptocurrency that has risen in value over time and outpaced rising prices for goods and services. It is losing this feature right now, but it will regain it after the bear market.
Economist Ivan Carrino explains the fall of bitcoin by the rise in interest rates in America to counter inflation. He warns that the price of bitcoin will rise if interest rates fall, as they did last year. He also points out that the same thing happens for stocks and bonds, as well as for the rest of cryptocurrencies.
Ivan Carrin says the Federal Reserve’s decision to raise interest rates is the result of inflation fueled by an aggressive rate cut at the height of the pandemic.
He notes that “with these policies, the Fed unties all this monetary momentum“. Bitfinex, a cryptocurrency exchange, recently said that the price of bitcoin and cryptocurrencies will depend on Fed policy.
An economist claims that the price of bitcoin “can not faceto Fed actions. Agreeing, economist Aldo Abram said: “Now, with less liquidity expected with the activities of the Fed, these sectors will not do well.“He thinks the crypto winter is going to continue and the downtrend in the stock market is likely to continue, like many other people.
According to him, “in addition, fears increase due to the appreciation of the dollar and the value of risky assets decreases.“Due to bitcoin’s volatility, investors view it as a risky investment. They tend to withdraw in such an environment.
For this reason, bitcoin is not in high demand right now. Bitcoin price is on the rise despite the crypto winter. This week, it broke above $22,000 within hours, after 25 days of trading below that level.