A Key Thesis for Bitcoin’s Long-Term Bull Market Just Got a Knock

A Key Thesis for Bitcoin’s Long-Term Bull Market Just Got a Knock

‘A popular narrative argues the massive stimulus programs from the Federal Reserve, launched to counter a coronavirus-induced recession, could hyperinflate the economy and fuel a major rally in bitcoin.

However, that bullish theory, which suggests the cryptocurrency would be viewed as a hedge asset in dire economic times, has been dealt a blow by recent data from the U.S. central bank.

The data suggests inflation is likely to remain absent for some time and, in fact, the probability of the U.S. economy slipping into deflation is rising.

There’s now a 78.6% chance of deflationary pressure for the U.S – the highest since 2008, according to St. Louis Fed’s deflation risk monitor. As tweeted by Ritvik Carvalho, a financial data correspondent at Reuters, the Fed’s favored inflation measure (below right) – the core personal consumption expenditure – has also declined to an eight-year low of 1%.”

A Key Thesis for Bitcoin’s Long-Term Bull Market Just Got a Knock

https://www.coindesk.com/bitcoin-long-term-bull-market-inflation-deflation-federal-reserve

Master Asked on June 27, 2020 in Bitcoin.
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