Advertisement
AD

Main navigation

Bitcoin (BTC) Is "Pointless Asset": IIF Chief

Advertisement
Fri, 24/11/2023 - 19:53
Bitcoin (BTC) Is "Pointless Asset": IIF Chief
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents
Advertisement

Robin Brooks, the chief economist at the Institute of International Finance (IIF), has labeled Bitcoin (BTC) a "pointless asset," attributing its market movements to Federal Reserve policies rather than its intrinsic value. 

This statement comes amidst Bitcoin reaching a new high of $38,437 on the Bitstamp exchange, its highest level since May 2022, driven by the resolution of the Binance legal saga and the anticipation of "spot bitcoin" ETFs.

Not an independent asset? 

Brooks' assertion that Bitcoin is akin to "just another futures contract on the Fed" implies that the cryptocurrency's value and market behavior are heavily influenced by the Federal Reserve's monetary policies rather than its own fundamentals. 

This perspective challenges the commonly held view of Bitcoin as a decentralized and independent asset. 

Related
Cathie Wood's Rumored Bitcoin Holdings Reduction Sparks Market Speculation

According to Brooks, investors might be better served by directly engaging with futures contracts that bet on the Fed's moves. He suggests that Bitcoin's movements are a mere reflection of broader economic policies rather than an asset with standalone merit.

Brooks's past criticism of Bitcoin   

The prominent economist has consistently stressed the flagship cryptocurrency's correlation with the Fed's interest rate policies in his social media posts. His view is supported by the fact that the Bitcoin price falls when the Fed adopts a hawkish stance and rises with a dovish outlook. 

Brooks has also dismissed the idea of Bitcoin as a store of value or a means of diversification. He has previously labeled it a "bubble asset" that is vulnerable to shifts in monetary policy.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards
ElmonX Unveils ‘The Scream’ NFTs by Edvard Munch For The First Time Ever
World's First Bitcoin Layer 2 Conference to Unite East & West in Hong Kong, April 2024
Is Bitcoin Mining Legal? Regions in the World Where Mining Is Legally Permissible
Zircuit, New ZK-Rollup Focused on Security, Launches Staking Program
AI Analysis Launches The AIA Mastercard – The Future of Crypto-Fiat Transactions
VAP Group hosts the majestic Global Blockchain Show 2024 in Dubai
Digital Transformation Week Is Returning to Santa Clara This Summer
Arab Financial Services (AFS) Enter Strategic Alliance with Xpence to Innovate SME Financial Management in Bahrain
Breaking Records: UXLINK Attracts 978,000 New Web3 Wallet Registration with $78,000,000 Deposit asset from February 01 to February 22, 2024
What To Expect from The Bitcoin Halving in April 2024
Testnet Launch for dWallet Network - Composable Modular Signature Network
ETH Denver Top Builders Base by Supermoon, Cointelegraph, NDC, Horizen, & Conflux
Citrea, Bitcoin’s First ZK Rollup, Announces $2.7M Seed Funding
Chromia’s Flagship Game ‘My Neighbor Alice’ Unveils 2024 Roadmap
First-Ever ICO on Bitcoin Blockchain: $3.1M Raised in Under 6 Days
CoinList to Host the MASA Token Public Sale as it Unleashes the World’s Personal Data Network
Sui Reveals Initial Wave of Speakers, Famed Venue for First Annual Basecamp Event
Vitalik Buterin Comes to Taiwan as Keynote Speaker at ETHTaipei 2024
Elevating Europe’s Crypto Hub: Next Block Expo Returns to Poland
Our social media
There's a lot to see there, too

Popular articles