Max Keiser, a well-known Bitcoin promoter and counsellor to El Salvador’s president, has adopted an unusual perspective on the future of the cryptocurrency. Keiser, a steadfast supporter of cryptocurrencies, surprised many of his fans recently with a comment that seemed to indicate a negative perspective.
The change in mood coincides with rising 10-year Treasury rates, which have now reached levels last seen in 2008.
Max Keiser, who is often a bull on Bitcoin and its potential, raised worries about the effect that these skyrocketing rates will have on the cryptocurrency market. He stated in a tweet that was widely shared in the cryptocurrency community that “rising rates will continue to challenge the Bitcoin price as more capital flows into high-yielding instruments.”
Keiser made a comment that seemed pessimistic, which is out of character for a fervent proponent of BTC maximalism. This abrupt turn-around runs counter to his earlier forecasts of Bitcoin’s price growth to ranges between $220,000 and $1 million. Many of his supporters are perplexed by this about-face as they try to make sense of his incoherent remarks.
Stubbornly high
Keiser’s opinions are framed against a complicated economic background, though. Members of the Federal Reserve’s open committee recently met, and this discussion brought to light the country’s persistent anxiety over inflation and interest rates. The committee members emphasise that inflation remains persistently high notwithstanding a reduction in both overall and core inflation rates.
The meeting’s attendees agreed that inflation has risen over the FOMC’s target level of 2%. They are steadfast in their resolve to bring inflation back within acceptable ranges. Due to just this, there were discussions at the most recent meeting about increasing the goal range for the federal funds rate to a range of 5.25% to 5.5%.
