Grayscale: Inflation and High Rates Are Obstacles for Bitcoin

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According to Grayscale analysts, the current macroeconomic factors may pose major challenges for the continued growth of BTC’s value in the near future.

The analysts believe that if inflation rates remain high, the Federal Reserve may postpone a key interest rate cut until much later this year or even until 2025.

This could lead to a positive impact on the US dollar and a negative impact on Bitcoin. The analysts also highlighted the importance of paying attention to macroeconomic factors, such as the Fed’s monetary policy and the overall state of the economy, when considering the performance of the digital asset market.

As seen in the previous crypto cycle, these factors can significantly influence Bitcoin’s value. Grayscale pointed out that the recent growth of Bitcoin has been largely due to an influx of funds into spot ETFs based on the cryptocurrency as well as anticipation for the upcoming halving.

However, the future performance of Bitcoin could also be affected by the possibility of a Fed rate cut, which may lead to further growth of the US dollar and potentially hinder growth of the digital asset market.

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