Robin Brooks, chief economist at the Institute of International Finance (IIF), recently shed light on the sharp decline in the value of Bitcoin. According to Brooks, this decline can be attributed to the market's anticipation of more aggressive interest rate hikes by the Federal Reserve. He also pointed out that the cryptocurrency lacks inherent value, diversification benefits and yield. The IIF analyst stated that the rise of Bitcoin was not due to any "special sauce" but rather the result of a more dovish Fed that caused the value of high beta assets to soar. However, surprisingly, when the Fed adopted their dovish stance, Bitcoin's value still fell so, according to Brooks, this demonstrated the digital asset's lack of genuine diversification, thus posing a "heads you lose, tails you lose" situation for investors. Ultimately, his conclusion was that while many investors, dubbed as "HODLER bros", continue to champion Bitcoin, the reality is that it is just another bubble asset with no store of value, diversification benefits, or yield.



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