Investors Turn to BTC as The Federal Reserve Battles Inflation
- The current inflation rate makes it difficult for the Feds to fix the economy.
- The people are turning to alternative financial models outside the mainstream macroeconomic sector.
There is an increasing contrast between policy updates from the U.S. Federal Reserve and Bitcoin prices. According to Brian Krogsgard, Bitcoin price tends to spike with every Feds moment with the press.
In a recent podcast, Brian and Josh agreed the current inflation rate makes it difficult for the monetary policy maker to proffer a solution to the struggling economy. According to Josh, inflation rates in the U.S. are still extremely high, despite posting lower figures year-on-year. Both podcasters acknowledged that the Feds seem to act too slowly, putting them in a lagging position and always behind the curve.
The podcasters explained how people are turning to alternative financial models outside the mainstream macroeconomic sector in search of security. That reflects in Bitcoin’s bullish response to almost every new policy from the Fed. They explained the price setup on the Bitcoin chart, identifying more momentum in the established bullish trend.
Using the 4-hour timeframe, Josh indicated a price setup that suggests the resumption of the bullish trend after a sideways consolidation. He acknowledged a similar opportunity in the ETH/USD trading pair, with a price action that suggests the early development of another leg in the bullish trend.
On the contrary, both podcasters agreed that pairing ETH and BTC in trade has been unprofitable since the merge that created Ethereum’s new version. Both cryptos have been at par and moved with a similar propensity, giving rise to a sideways-moving chart.
With both ETH and BTC remaining at par and moving at almost the same pace, it shows the common denominator in the trending markets is the U.S. dollar which has struggled to strengthen over the years. The podcasters noted the inflation situation is so extreme that even with increasing wages, the purchasing power of users remains weak due to skyrocketing prices.