It’s been reported that Bitcoin is the big winner in an inflationary environment not. Check out the latest reports below.
Bitcoin is winning massively these days
It’s been revealed the fact that a prominent crypto influencer is doubling down on his belief that Bitcoin (BTC) continues to serve as an inflation hedge even after its deep correction last year.
In a lengthy thread, Bitcoin bull Anthony Pompliano explained the reason for which BTC is still the best hedge against inflation despite the king crypto’s bearish price action in 2022 when prices of goods and services were soaring.
According to Pompliano, those who dismissed Bitcoin last year missed the big picture.
“Markets are forward looking. So when the Fed said they were going to bring down inflation, investors sold their inflation hedge assets to buy treasuries and value stocks. They didn’t wait for inflation to come down. They front-ran what the Fed said they were going to do.”
He continued and said this:
“Many people incorrectly pointed out that Bitcoin’s crash in 2022 proved it wasn’t an inflation hedge. That couldn’t be more inaccurate. You would expect inflation hedge assets to fall in price when the Fed is bringing down inflation. Surprise! That is what happened.”
Bitcoin to hit a mind-blowing price
BitMEX co-founder CEO Arthur Hayes is forecasting a massive Bitcoin (BTC) rally and a major pivot from the world’s central banks.
“Reacting to the news that the People’s Bank of China has reduced the Reserve Ratio Requirement (RRR) by 0.25%, Hayes says he’s targeting a $1 million price tag for Bitcoin,” according to the latest reports.
Hayes believes China’s move backs his thesis that more government intervention and infusions of capital are coming.
More than that, it’s been revealed that the Reserve Ratio Requirement is the amount of reserves that a commercial bank must maintain as a percentage of their deposits.