Bitcoin's Future: Inflation Relief to Bring Price Surge

IconCryptoNewsTerminal Staff14 Jul, 2024

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Bitcoin's Future: Inflation Relief to Bring Price Surge

It's no secret that Bitcoin has been struggling lately. The cryptocurrency has lost over 70% of its value since its peak in November 2021. However, some experts believe that Bitcoin could be poised for a major comeback. According to Odaily, ViBit institutional business head Eugene Cheung recently stated that Bitcoin is "a unique asset class that performs well in both risk-on and risk-off environments." He added that "right now, we only have historical references during a risk-off environment, but the data is clear that BTC significantly outperformed other asset classes." Cheung's comments are supported by research from Arcane Research, which found that Bitcoin has a negative correlation with inflation. This means that when inflation is high, Bitcoin tends to perform well. With inflation currently at a 40-year high, it's possible that Bitcoin could be in for a major upswing. As inflation continues to ease, investors who have been sitting on the sidelines may start to move their money into Bitcoin, driving up the price.

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