the cards. Please conduct your own thorough research before investing in any cryptocurrency. If the Fed hikes the benchmark federal funds rate at its December meeting, this move would place upward pressure on broader borrowing costs. If interest rates start rising, it could draw many investors away from bitcoin and into interest-bearing assets like bonds. However, should borrowing costs push higher, the digital currency could lose some of its luster. For starters, inflationary pressures have been modest. Baldwin "There are many men of principle in both parties in America, but there is no party of principle." Alexis de Tocqueville "We have, I fear, confused power with greatness." Stewart Udall. But, thus far, bitcoin has had more than seven years to gain adoption, overcome its challenges and btcoin in price. What did this mean for bitcoin? For one, investors found the digital currency more compelling since the opportunity cost of foregoing interest-rate payments was lower.
In addition to lackluster inflation, concerns about European economies, as well as those of Japan and China, could hinder any Fed desires to hike benchmark rates, Tucker argued. Intetest in offering your expertise or insights to our reporting? This article should not be taken as, and is not intended to provide, investment advice. Interested in offering your expertise or insights to our reporting? While the global economy has enjoyed a drawn-out opciones binarias forex period of low interest rates, this situation might change soon, several experts told CoinDesk. During the s, the price of a barrel of oil surged in value, which resulted in the US economy suffering both high inflation and stagnant economic growth. In addition, central banks that are using ultra-low interest rate policies and negative interest rate policies may be a long ways off from entertaining rate hikes. Bitcoin could enjoy continued draw as a safe haven should economies like Europe and Japan continue to suffer economic weakness. Epicurus "People are trapped in history and history is trapped in them.".
Fed policymakers realized that the central bank would not be able to fight both inflation and economic weakness at the same time, and opted to reign in inflation. But, there are many other factors that could affect bitcoin prices aside from central bank policy and its impact on broader interest rates. Contact us at news coindesk.