Digital Currency Researcher: Bitcoin is not resistant to inflation!
Digital currency researcher Lucas Outumuro has said that the fall in the price of bitcoin, at the same time as the news of rising inflation in the United States, shows that this asset is not very resistant to inflation. He said the increase in bitcoin withdrawals from exchanges shows that investors currently want to keep their bitcoins.
To Report Daily Hoodel, Lucas Otomuro, research director at IntoTheBlock, has recently challenged the notion that bitcoin is an anti-inflation asset because of its limited supply of 21 million units.
In a recent news release, Otomuro noted that the recent fall in the price of bitcoin coincided with a sharp rise in inflation in the United States.
Otomuro wrote:
As signs of rising inflation became apparent, many well-known investors, such as Paul Tudor Jones, thought that bitcoin was a protection against inflation. The poor performance of Bitcoin in recent days is likely to dampen institutional investors’ hopes for it as a barrier to inflation.
Also read: If Bitcoin is an anti-inflation asset, then why does it sometimes fall?
He noted on his Twitter account that the price of bitcoin first rose on Friday; But the bitcoin price fell again after the US Consumer Cost Index was released and showed that inflation had risen in the country.
“IntoTheBlock researcher said:
Bitcoin is now following the S & P500 index step by step. After 8:30 a.m., consumer spending and inflation data were released, bitcoin rose 2 percent, but as markets opened [مجدداً] Fell. This does not seem to be the case for bitcoin’s anti-inflation theory.
Bitcoin is currently trading at around $ 49,200 and the current price is not much different from the levels of the last seven days.
Otomuro has said that not all bitcoin market benchmarks appear to be declining. According to him, the weekly withdrawal of bitcoins from exchange offices has reached its highest level in the last five months, so that in the last seven days, nearly $ 3 billion bitcoin has been withdrawn from centralized exchange offices. Capital outflows from exchanges can be an upward signal, as it indicates that investors want to keep their bitcoins.