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Bitwise CIO Says Bitcoin’s Sensitivity to US Interest Rates Will Decline Over Next Five Years
Summary
- Bitwise Chief Investment Officer Matt Hougan said changes in US benchmark interest rates will have less impact on Bitcoin (BTC) prices over the next five years than they have in the past.
- Hougan said CME expects benchmark rate moves over the next year to be limited to about 50 basis points, and that a Federal Reserve led by Kevin Warsh would be more likely to fine-tune rates in smaller increments.
- Hougan said benchmark interest rates will remain an important variable, but their influence on Bitcoin will diminish as rate swings narrow and other factors become more important.
Forecast Trend Report by Period
Bitwise Chief Investment Officer Matt Hougan said changes in US benchmark interest rates will have less influence on Bitcoin’s price over the next five years than they have in the past.
In a post on X on July 28, Hougan wrote that US benchmark rates have moved sharply since Bitcoin’s launch, but the size of those adjustments has gradually narrowed in recent years. CME expects rate moves over the next year to be limited to about 50 basis points, he wrote, adding that a Federal Reserve led by Kevin Warsh would be more likely to fine-tune rates in smaller increments.
Benchmark rates will remain an important variable, Hougan said. But as those moves shrink, their impact on Bitcoin will also diminish, making other factors more important.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.