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In an unexpected turn of events, renowned Bitcoin evangelist and advisor to El Salvador's president Max Keiser has taken a surprising stance on the future of Bitcoin. Keiser, who has long been a vocal advocate for the cryptocurrency, caught many of his followers off guard with a recent statement suggesting a bearish outlook.
The shift in sentiment comes amid rising yields on 10-year U.S. Treasuries, which have now reached levels not seen since 2008.
Alex DovbnyaUsually bullish on Bitcoin and its potential, Max Keiser expressed concerns about the impact of these surging rates on the cryptocurrency market. In a tweet that reverberated through the crypto community, he noted, "Rising rates will continue to challenge the Bitcoin price as more capital flows into high-yielding instruments."
Rising rates will continue to challenge the #Bitcoin price as more capital flows into high-yielding instruments. https://t.co/vwZtyou3xP
— Max Keiser (@maxkeiser) August 17, 2023
Keiser's statement appeared bearish, which is uncharacteristic for a staunch BTC maximalist. This sudden pivot contradicts his past predictions of Bitcoin's ascent to price levels ranging from $220,000 to $1 million. This about-face has left many of his followers scratching their heads, as they grapple to reconcile his contradictory statements.
Stubbornly high
Meanwhile, Keiser's sentiments are set against the backdrop of a complex economic landscape. The recent meeting of the Federal Reserve's open committee members highlighted ongoing uncertainty surrounding inflation and interest rates in the U.S. Although a decline in both general and core inflation rates has been observed, committee members stress that inflation remains stubbornly high.
Participants at the meeting acknowledged that inflation's current levels exceed the FOMC's target of 2%. Their determination to steer inflation back within acceptable bounds remains unwavering. Exactly this has led to discussions of raising the target range for the federal funds rate to a range of 5.25% to 5.5% at the last meeting.
Alex Dovbnya
Vladislav Sopov
Dan Burgin