Bitcoin is back on track for $30,000, traders say after BTC shakes off CZ Interpol rumors.
On the macro front, changes were also afoot, with the weekend announcement of an oil production cut by the Organization of the Petroleum Exporting Countries, plus 10 other oil-producing nations, combined with weak U.S. economic data pressuring the dollar.U.S. Dollar Index 1-day candle chart.
It noted that despite the potential for Bitcoin to benefit from the mayhem, just like with last month’s banking crisis, it remained “unproven” as a safe haven during a recession. “If the Fed were to act quickly in a recession, just as they did during last month’s banking crisis, we expect that BTC would again moon,” it continued.
“However, in a stagflationary environment, if the Fed feel they are unable to cut rates until inflation has reached their target again, will BTC follow risk assets lower? That remains to be seen. While BTC is unproven as an inflationary hedge, it is definitely the highest beta monetary irresponsibility hedge out there.”was initially thought to risk a return of inflationary forces, allowing the Fed to continue its rate hikes.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.