Bitcoin, Gold are non interest-bearing asserts and their prices are supposed to go down, when leading central bank's like the Federal Reserve, the Bank of Japan and the European Central Bank are raising their target interest rates and thus exerting upward pressure on global interest rates levels.
According to standard economic and finance theory, that is.
For Bitcoin, Ethereum, Ripple, Dogecoin and cryptocurrencies in general this has not been true since the begining of 2023. The Federal Reserve, the Bank of Japan and the European Central Bank have been raising their target interest rates since the beginning of 2023 and yet Bitcoin, crypto's prices have been rising.
Gold's price, on the other hand has been moving sideways.
One way to explain this is that with all the newly created money for 10 trillion USD in the last 10 years by central banks globally, Bitcoin, cryptocurrencies prove very useful in transferring and storing wealth, which naturally raises their prices.
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Due to their volatility the last function of money of unit of account is still not to 100 % fulfilled by Bitcoin, cryptocurrencies.
Many financial technology, fintech companies are betting on Bitcoin's blockchain to revolutionise transfer payments. Other corporations are slowly warming to investing their cash reserves at least partially into cryptocurrencies assets.
The bottom line is that Bitcoin, Ripple, Ethereum, Dogecoin and cryptocurrencies' future looks promising.
Hinging on the public's adoption tendency for cryptocurrencies, of course.
Wolfteam Ltd.
www.wolfteamedge.com
#capitalmarkets #AI #mergersandacquisitions
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