Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
The economic conditions that allowed Bitcoin to skyrocket from a multi-year low at $3,000 to an all-time high at $69,000 have ended. There is less liquidity across financial markets, credit has tightened, and investors are fleeing to U.S. dollars due to macroeconomic uncertainty.
The main protagonist in the drama affecting global assets and hurting economies around the world is the U.S. Federal Reserve (Fed). The financial institution has been hiking interest rates and reducing its balance sheet with the objective of slowing down inflation.
The Fed has a mandate to keep inflation at around 2%, but for the first time since the 1970s, the measure has soared close to the 10% in the United States alone. In other parts of the world, including top economies, inflation has become a more significant issue.
Good Morning from #Germany where #inflation pressures keep rising. Import prices were 32.7% higher in Aug YoY, the highest increase since Mar 1974. Energy imports were 162.4% more expensive YoY
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