Digital asset manager CoinShares believes that with the economic recession, Bitcoin (BTC) can rise.
CoinShares states that as economic recession unfolds due to economic factors and the government’s monetary policy, Bitcoin may be on a different plane compared to other investment vehicles.
“While we think the Fed will continue to raise interest rates throughout the summer, we believe they will adopt a softer stance on economic growth from now on, leading to significant weakness in the dollar.”
The firm predicts that if the Fed fails to curb inflation, the strength of the dollar will weaken and then Bitcoin will rise. He also believes that stocks will suffer in the worsening economic conditions.
CoinShares also emphasizes the fact that Bitcoin failed to rally despite the Fed raising interest rates four times this year, believing that the leading crypto can reward its investors in the coming periods.
“Although Bitcoin’s price performance remains weak in the face of the Fed’s aggressive policy, this may be a short-lived situation”
CoinShares also discussed how Bitcoin could be affected during a possible recession two months ago.
“Bitcoin now has an inverse correlation with the US dollar
Unfortunately, despite many unknowns, we believe that the US and the rest of the world will decline economically in 2023. Perhaps there will be stagflation in the future. We believe that Bitcoin is a good insurance policy in this monetary policy mess, as the liquidity trap has really taken hold of central bankers.”
10143
