The economist predicted how US inflation will affect the bitcoin rate
Bitcoin fell by 6 thousand dollars after activating its update. In an interview with Sputnik radio, economist, managing director of Trade123 Vladimir Rozhankovsky commented on the situation.
The bitcoin rate fell by 6 thousand dollars per day, to 60.2 thousand dollars, RBC reports, citing data from CoinGecko. In 24 hours, the first cryptocurrency lost 7.6% in price, the publication specifies. It is noted that on Sunday, November 14, the largest Taproot update in the last four years was activated on the bitcoin network.
In an interview with Sputnik radio, economist, managing director of Trade123, Vladimir Rozhankovsky, linked the fall of bitcoin with the update.
“As I understand it, there are certain technological problems in the new modification of the bitcoin protocol, but these are everyday issues, they will be solved by developers. This is, for example, updates to the iPhone: some are successful, some are unsuccessful, and this sometimes affects the value of Apple shares. Developers start to fix the mistakes they made, start to improve. I’m not a developer, it’s hard for me to assess how problematic the update turned out to be, but, as far as I understand, this is a planned thing, “he said.
This year there were much more turbulent events for bitcoin that influenced its value, the expert continued.
“I mean April this year, when the Chinese authorities completely banned mining, banned the possession and exchange of cryptocurrencies, in short, banned bitcoin. It was a serious blow,” Vladimir Rozhankovsky said.
In his opinion, inflation in the United States will lead to an increase in the bitcoin rate in the future.
“I think that the upward movement is provided by the latest inflation data, in particular, in America, since inflation above 6% is absolutely in no way. development of the country’s infrastructure more than a trillion dollars – ed.), huge allocations are made. Most of these funds will be printed by the Federal Reserve (US Federal Reserve System – Ed.), and this fact already predetermines the further vector of assets. I think that this will be , of course, (movement – ed.) up “, – Vladimir Rozhankovsky predicts.