Crypto investors should hold ethereum rather than bitcoin as interest rates increase and because the blockchain is more useful in powering decentralized finance and NFTs.
- JPMorgan analysts, led by market strategist Nikolaos Panigirtzoglou stated that rising interest rates could cause a problem for bitcoin.
- Bitcoin has flourished in a world of ultra-low interest rates and huge bond-buying, which has led to increased cash in the markets and heightened concerns about overheating.
- Many investors perceive bitcoin as “digital gold” and a hedge against inflation.
- Meanwhile, central banks worldwide are scaling back their support for economies in a push to ease off strong inflation. That signals interest rates and bond yields are likely to start rising.
The Bank of England on Thursday stated interest rate would have increased “over the coming months.” Considering that, JPMorgan stated investors might be better off holding crypto.
BTC USD up +0.35%, ETH USD down -0.71%