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Sunday, December 4, 2022

Cryptocurrencies: Coinbase CEO Now Says Bitcoin Is Not an Inflation Haven

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“Frankly, i will admit i overestimated the chances of bitcoin being this inflation hedge in this macro environmentArmstrong said on Coinbase’s internal podcast, “I thought I might actually bring more attention to bitcoin in this kind of environment, but looks like we got a little ahead of ourselves”.

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Armstrong indicates that, in declining macroeconomic environments, “we see there is a flight to safety”. This corresponds well with recent crypto market movements, closely related in recent times with the stock marketas investors try to run away from what they see as risky assets.

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In this regard, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, highlights the strength of cryptos, particularly bitcoin, to “widespread risk selling” after Powell’s aggressive tone. “The currency maintains the support above the psychological mark of 20,000 dollars, and yesterday it only lost about 1.60%, despite a sale of more than 3% on the Nasdaq”, he stressed, although he acknowledges that “the risk environment remains less than ideal for a bull market to develop”.

“In the traditional economy, that (safe haven) was always gold, raw materials, things like that. But I think what we’ve seen in this recession is that the crypto economy is not yet a significant enough percentage of the global economy, of the broader economy, to really be treated like that digital gold in the sense that people make a flight to security towards bitcoin, ”said Armstrong.

Source: Ambito

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