Central banks vs. cryptocurrencies?
Against the backdrop of rising oil prices driven by military action, central banks in many countries will soon have to revise their monetary policies. The decisions they make next week could directly affect the cryptocurrency market, particularly the price of bitcoin.
It is expected that the US Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, and a number of other regulators will raise key rates in an attempt to curb inflation. This, in turn, could negatively affect the value of digital assets, which showed high volatility and sharp price fluctuations during the pandemic period.
However, experts believe that bitcoin and other cryptocurrencies will remain attractive to investors in the long term as a reliable safe-haven asset. Moreover, they may become an alternative to traditional risk hedging instruments in the face of an unstable economic situation.