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According to Forbes, the launch of the US Federal Reserve printing press may lead to an increase in the value of cryptocurrency
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According to Forbes, the launch of the US Federal Reserve printing press may lead to an increase in the value of cryptocurrency

Dec 13, 2023

Experts interviewed by Forbes magazine predict an uncertain increase in asset prices in the crypto market when the US Federal Reserve increases the active printing of new paper dollars. According to experts, the regulator's efforts to create money will inevitably increase the value of digital assets. This is because, with inflation expectations, potential investors will take measures to protect their investments in the most liquid digital assets, such as bitcoin and ether.

Experts interviewed by Forbes magazine also point to a gradual decline in the attractiveness and stability of the US dollar. This is due to expansive government spending and the constant growth of the money supply after the 2008 financial crisis. If the US dollar does face devaluation in 2024, as some experts believe, then bitcoin and other digital assets may become a natural alternative to the national currency.

Zach Pandl, a former managing director of Goldman Sachs, sees bitcoin as the only "obvious competitor" to the US dollar, especially with a possible increase in the Fed's dollar printing.

However, Anthony Trenchev, co-founder of the Nexo crypto lender, believes that in the short term, crypto investors should not expect an explosive increase in the value of digital assets. In his opinion, active participants in the crypto market should remain cautious, since there is no guarantee that the approval of a bitcoin ETF by the American authorities will automatically lead to an increase in the value of bitcoin.

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