The response of the values of other stocks, commodities, the US dollar, and Bitcoin to macroeconomic news is investigated.
The Bitcoin – Macro Disconnect, a 31-page analysis compiled by the US Federal Reserve Bank of New York examining the effects of macroeconomic news on Bitcoin and other asset classes, was issued on Wednesday. Significantly, the analysis’s conclusions left the central bank of the United States baffled.
“The important finding is that Bitcoin is orthogonal to monetary and macroeconomic news, unlike other U.S. asset classes.
Bitcoin Case Study by the Federal Reserve
The Federal Reserve significantly considered several news for the examination, including inflation, the actual economy, monetary policy, and regulation announcements. Notably, the analytical case study’s subjects included Bitcoin, the US Dollar, US stock markets, and commodities like gold.
The Fed experts viewed Bitcoin as a “purely speculative asset” with no underlying value for the study. This statistical research produced several hypotheses and estimations that pointed to Bitcoin’s negligible reaction to the US macroeconomic news.
The US Federal Reserve stated that it needed additional information to examine the discrepancy between Bitcoin and macroeconomic fundamentals.
Despite this, acceptance rates for Bitcoin are on an upward track.
Particularly, there is expectation of a bullish rise like the one in 2019. Notably, renowned cryptocurrency expert Lark Davis predicted that the continuation of a daily golden cross pattern like to 2019 will guarantee Bitcoin’s bull run. It’s also expected that the Federal Reserve would give the US CBDC’s debut the go-ahead.