PiCK
Bitwise CIO Says Bitcoin’s Exposure to US Rate Moves Will Diminish Over Next Five Years
JH Kim
Summary
- Bitwise Chief Investment Officer Matt Hougan said moves in US benchmark interest rates will have less impact on Bitcoin prices over the next five years than they did in the past.
- Hougan said CME expects benchmark interest rate moves to be limited to 50 basis points over the next year, and that rates could be adjusted more precisely under a Kevin Warsh-led Federal Reserve.
- Hougan said a narrower range of benchmark interest rate moves would reduce their influence on Bitcoin, while increasing the importance of other factors.
Forecast Trend Report by Period
Bitwise Chief Investment Officer Matt Hougan said US benchmark interest-rate moves will have less influence on Bitcoin prices over the next five years than they have in the past.
Writing on X on July 28, Hougan said US benchmark rates have swung widely since Bitcoin’s launch, but those adjustments have recently become smaller. CME expects benchmark-rate moves to be limited to 50 basis points over the next year, he wrote, adding that rates could be fine-tuned more precisely under a Kevin Warsh-led Federal Reserve.
Benchmark rates will remain an important variable, he said. But as the range of rate moves narrows, their impact on Bitcoin will fade and other factors will become more important.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.