Analysts of the exchange Coinbase believe that after halving bitcoin (BTC) will grow in value. Buyer activity will increase and the cryptocurrency will renew its March high.
Former Coinbase CTO Balaji Srinivasan also expects the investment attractiveness of BTC to improve.
In his opinion, bitcoin’s fundamental position is improving due to the challenging economic environment in the US. Not only the U.S. government debt is growing, but also inflation is accelerating.
Consumer prices in the country rose by 3.5%. The authorities are unable to curb inflation at the level of 2%. The Federal Reserve is likely to be forced to maintain a high discount rate in the coming years.
Bitcoin in this situation, as a digital version of the dollar, will become a more reliable asset, the expert believes. He referred to surveys, from which it follows that the bulk of Americans fear the acceleration of inflation.
Investors are looking for safer instruments, and bitcoin is becoming one of them.