Inflation escalation in the world could raise the price of bitcoin
Specialists affirm that the measures of the governments and central banks could generate a financial shock in the global economy
According to an analysis by BitMEX Research, due to the increase in public spending to minimize the effects of the pandemic, the world economy and financial markets could suffer an inflationary shock in several countries.
According to this scenario, specialists see that in the crypto market the price of bitcoin could shine and become the greatest opportunity for the first cryptocurrency on the market.
“Where bitcoin’s price can shine is in the volatile inflationary consequences of (government) responses to the collapse. In our opinion, in this modified economic regime, where the economy and financial markets are loosening (…) it could be the greatest opportunity that bitcoin has seen, in its short life, ” the firm assures.
In accordance with the decisions taken by various governments and central banks to inject funds such as the case of the United States Federal Reserve, which announced a stimulus package that includes the purchase of assets for $ 700 billion, the doors can be opened to accelerate financing to those governments that need it.
BitMEX states that “inflation has been low and stable for over 30 years and the risks are unknown to politicians and the public. We cannot predict how and when inflation will emerge; however, at some point there will be a sudden shock. Not only an economic shock, but a cultural shock.”
K.Villarroel
Source: criptonoticias
