Despite the slew of criticisms surrounding Bitcoin's capacity as an inflation hedge, investor Anthony Pompliano staunchly maintains that the cryptocurrency continues to be the asset of choice for investors looking to protect their wealth against inflation. This belief is further reinforced by Bitcoin's recent surge in response to fears of further inflation is set to ensue in the aftermath of the Federal Reserve's monetary policy.

The run up to near all-time highs of $64k before the November 2021 tumble of over 70%, was largely attributed to investors reacting to the Fed's lowering of interest rates and simultaneous cash injections into the economy. As Pompliano explains, investors were predicting an uptick of inflation, thus driving Bitcoin's price up. In contrast, the Feds' efforts to keep inflation in check caused investments to shift from the digital asset to stocks, hence the market correction.

In the last week, the digital asset bounced back from months in the doldrums, trading around the $28k mark - a 32% increase. Pompliano speculates that investors currently have a newfound confidence in Bitcoin's ability to deliver as a swelling inflation hedge. Furthermore, the Fed's struggles in curbing inflation along with renewed intent to raise the interest rate has investors flocking back to the digital asset, as it appears to be more reliable in the face of uncertain times.

All things considered, Pomp still recognizes Bitcoin as the definitive option and building block for inflation hedging, citing its meteoric rise in the face of inflationary events. This rising confidence can be seen in Bitcoin's turbulent yet resilient journey as a major player in the cryptoverse.



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