Bitcoin Is The Big Winner In An Inflationary Environment, Says BTC Bull Anthony Pompliano – Here’s Why
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 long thread, Bitcoin bull Anthony Pompliano explains to his 1.6 million Twitter followers why BTC remains the best hedge against inflation despite the royal crypt’s bearish price action in 2022 as prices of goods and services rose.
According to Pompliano, those who dismissed Bitcoin last year missed the big picture.
“Markets look ahead. So when the Fed said they were going to bring down inflation, investors sold their inflation hedges to buy Treasuries and value stocks. They didn’t wait for inflation to fall. They ran what the Fed said they were going to do.
Many wrongly pointed out that Bitcoin’s crash in 2022 proved that it was not an inflation hedge. It couldn’t be more inaccurate. You can expect inflation hedge assets to fall in price when the Fed brings down inflation. Surprise! That is what happened.”
The crypto influencer also says that Bitcoin’s recent 60% price rise can be attributed to the crypto king’s response to the current macroeconomic situation.
“Bitcoin is up 60% to start 2023. Why is that happening? The market has realized that the Fed has raised interest rates by 4.5% and sold $1 trillion off the balance sheet, but inflation never fell below 6%. Now the Fed is increasing [its] the balance sheet and inflation are accelerating.
Bitcoin is reacting to the current macro situation. The market looks ahead and knows that inflation will be higher and last longer than previously thought. The Fed has no choice. Investors need an inflation hedge again. Bitcoin is the big winner.”
Pompliano goes on to say that Bitcoin’s correlation to inflation is simple and that traders should learn to ignore all the “noise” in the market.
“Bitcoin is the best inflation hedge in my opinion. There is a lot of noise in the market. Learn to ignore it. When inflation expectations increase, people buy Bitcoin. When inflation expectations decrease, people stop buying Bitcoin.”
Bitcoin is trading at $27,161 at the time of writing, a gain of 3% on the day.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney