Grayscale Speaks Optimistically About Bitcoin: The FED Will Drive BTC Up! - Coin Bulletin

The Central Bank of the USA (Fed) kept interest rates steady, drawing attention to rising inflation and unemployment risks; this could be a positive development for Bitcoin.

The Central Bank of the USA stated in its latest announcement that the risks of stagflation have increased. This is a situation characterized by a slowdown in economic growth and rising inflation. Grayscale research director Zach Pandl suggested that stagflation could be beneficial for Bitcoin. Pandl noted that Bitcoin is regarded as a modern store of value as a scarce digital commodity. Such economic conditions may support store of value assets like Bitcoin while negatively affecting traditional assets.

After the Fed's statements, Bitcoin rose above the 96,000 dollar level, recording a 1.6% increase. This increase can be attributed to investors viewing Bitcoin as a safe haven against rising inflation and unemployment concerns. Additionally, trade talks between the US and China also had a positive impact on the markets.

Bitcoin may once again be favored as a store of value

As the risk of stagflation increases, the potential for digital assets like Bitcoin to gain value rises. Pandl highlighted that Bitcoin has not been present in past stagflation periods, emphasizing that Bitcoin stands out as a resilient asset against modern economic uncertainties.