How bitcoin affects and is affected by the global marketScroll Down
The global economy is highly reliant on whatever happens on Wall Street and the economy of the United States; as such, we can also say that the exchange price of Bitcoin is also influenced by these two factors. When it comes to the exchange rate of Bitcoin, there are a number of factors that drive the price of Bitcoin up and down. The most important factors, as we can see now, are the interest of the markets to have access to and exchange with Bitcoin, as well as the market price of other assets.
Now, a report recently published by Pantera Capital states that the market is more focused on the prices of stocks than it is about Bitcoin’s prices. Pantera Capital has the distinction of having established the first hedge fund solely focused on blockchain development and cryptocurrencies. The company's Blockchain Letter is highly respected as a document that takes a hard look at the fundamentals shaping the future of Bitcoin and other major tokens, and its latest issue suggests that BTC/USD pricing could see a major boost later this year as inflationary concerns by the U.S. Federal Reserve spill over to Wall Street.
The letter’s release comes only a couple of days after the company published an article explaining how the Federal Reserve’s actions could have “serious” consequences on the global crypto markets. In response, Coinbase’s COO, Asiff Hirji, recently said that Bitcoin’s recent performance has been driven by the interest of Wall Street, not investors or blockchain enthusiasts. However, it appears that these two issues will be closely related to each other as blockchain and cryptocurrency adoption continue to increase globally.
Although the most important factors driving Bitcoin prices have been Wall Street and the economy of the United States, several other smaller factors have also influenced its prices. The key thing to remember here is that many investors treat Bitcoin as a flight-to-safety asset similar to precious metals such as gold and silver. Should inflationary concerns remain along with geopolitical tensions between Russia, Ukraine, and the U.S., we will see more investors flocking to Bitcoin later this year.