As it is known, the monetary tightening of the US Federal Bank (FED) Bitcoin $99,683.26Among the main factors that suppress the acceleration of (BTC). Economist Timothy PetersonIn his sharing from his X account, he argued that the Fed narrowed the money supply more than necessary. According to him, the current policy increases the risk of deflation with price decreases and expenditure reduction. Timothy showed the pressure of the decisions taken as the biggest obstacle to Bitcoin’s real potential.
How does Fed’s strict monetary policy affect Bitcoin?
Peterson criticized the Fed’s monetary tightening in X sharing. He argued that the decisions taken more than necessary of money supply. Like this deflation He said that the risk increased, prices decreased and economic growth slowed down. He stressed that the shrinkage of the economy faster than expected limits the financial moves of both companies and individuals.
Bitcoin and Crypto Money MarketPeterson noted that Bitcoin’s price is directly influenced by these policies, said that the current level of Bitcoin is 30 to 50 percent lower than real potential. Investors’ greatest moderate monetary policy crypto currencyHe said he thought he could get rid of harsh decreases. Long -term effects crypto currency He added that he could interrupt the stability in the market and that it will weaken innovation and corporate participation.
“Increased use of BNPL shows that there is a problem in expenditures”
Recalling that more than 25 percent of American consumers resorted to Buy Now, Pay Later (BNPL) loans in market purchases, Peterson shared that this rate was 14 percent last year. Growing Credit requestHe said that the real distress underlying economic statistics.
He stressed that the unemployment rate remains at a level of 4.2 percent is a superficial picture and that borrowing and spending difficulties became widespread. He also underlined that investors should carefully build their positions in the crypto money market until the economic appearance became clear.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
