Harry Yeh has linked Bitcoin price appreciation to dollar devolution
Quantum Fintech Group founder Harry Yeh said interest rate hikes would “not necessarily” be bad for Bitcoin in an interview with Bloomberg TV on Monday.
Yeh believes that Bitcoin serves as a hedge against inflation that benefits from dollar devaluation:
The more money is printed, the more the value of Bitcoin and all of those things tends to increase, but I think it’s the other way around. I don’t think Bitcoin is going up in value, it’s just that dollars are worth less.
As reported by U.Today, Bitcoin reclaimed the $49,000 level after the Federal Reserve announced that interest rates would be left untouched. However, up to three hikes are expected to occur in 2023. The Fed also sped up tapering by reducing bond purchasing. Some market analysts believe that this will not bode well for cryptocurrencies and other risky assets, whose prices are believed to be buoyed up by the printing of more money.
Bitcoin is currently trading at $ 51,505, with the bulls trying to stage a convincing breakthrough.
When asked about the persistent correction between Bitcoin and other risky assets, he noted that the flagship cryptocurrency does tend to move in tandem, a fact that is often weaponized by crypto critics.
Bitcoin has consistently traded at the same pace as tech stocks. Hedge fund manager Brian Kelly recently predicted that Bitcoin and the Nasdaq would start trading higher from 2022.
However, he also said that it’s “definitely important” to have crypto as part of one’s portfolio. He also notes that investors can easily buy a small portion of crypto, but buying stocks usually requires a sizeable amount of money (except for platforms of the likes of Robinhood).
He sees payments and remittances as the most important use case. Unlike traditional financial institutions, cryptocurrencies are accessible 24/7, Yeh notes.
