BTC Emerges as a Safe Haven for Investors Amidst Federal Reserve's Inflation Battle

BTC Emerges as a Safe Haven for Investors Amidst Federal Reserve’s Inflation Battle

Investors have been increasingly drawn towards Bitcoin (BTC) amidst the Federal Reserve’s struggle with inflation. The severity of the inflation situation has left consumers with weak purchasing power, despite rising wages. According to Brian Krogsgard, the Cofounder & CMO at Flip, the policy updates from the U.S. Federal Reserve and Bitcoin prices are showing a clear contrast. 

The Fed’s efforts to combat inflation may take longer than expected, which could impact the cryptocurrency market. Despite months of stagnation, Bitcoin has experienced a surge of over 20% in the past two weeks, leading investors to flock to BTC as a hedge against inflation. However, it’s worth noting that higher interest rates could potentially harm stocks, cryptocurrencies, commodities, and other investments until 2023.

All About the Recent Discussion 

In a recent podcast, Brian and Josh Olszewicz, a Portfolio Manager at Valkyrie, engaged in a discussion about the current inflation rate and its impact on monetary policy makers’ ability to provide viable solutions for the struggling economy. Both parties reached a mutual agreement that the current inflation rates in the US are excessively high, despite a year-on-year decrease in inflation figures. 

The Federal Reserve’s slow response was also acknowledged, causing them to fall behind the curve. The discussion also touched on how people are exploring alternative financial models outside the mainstream macroeconomic sector to find a sense of security, which is reflected in Bitcoin’s bullish response to almost every new policy from the Fed. Furthermore, the podcasters analyzed the price setup on the Bitcoin chart and identified more momentum in the established bullish trend. 

Minute Important Trends 

Based on the 4-hour timeframe, Josh has detected a potential price configuration that shows a continuation of the bullish trend after a period of sideways consolidation. He has also identified a similar opportunity in the ETH/USD trading pair, where the price action indicates the early stages of another uptrend leg. 

However, both podcasters have agreed that pairing ETH and BTC in trade has not yielded profits since the merge that created Ethereum’s new version. Both cryptocurrencies have been moving with similar tendencies, resulting in a chart that is relatively stagnant.

The podcast hosts also noted that inflation has reached concerning levels, leading to a diminished purchasing power for consumers, despite increasing wages, owing to the exorbitant prices.