Grayscale says recent inflation data could be a short-term negative for crypto, but persistent inflation will ultimately foster a supportive environment for crypto.
Store of value assets, such as Bitcoin (BTC), will continue to be a hot commodity as the United States government continues to overspend and keep interest rates high, according to Grayscale’s managing director of research Zach Pandl.
“We expect persistent inflation and unsustainable budget deficits to contribute to continued demand for store of value assets, like Bitcoin,” Pandl told Cointelegraph.
Pandl argued that given the current high inflation, the Federal Reserve is unlikely to reduce interest rates anytime soon. However, upcoming events like the Bitcoin halving, scheduled for April 20, as well as rising economic growth and more crypto adoption will fuel Bitcoin’s price.
