Inflation Expected to Decrease, Bitcoin Price Predicted to Rise

Bittime - 10x Research released their latest analysis report estimating the impact of decreasing inflation on the crypto market, especially Bitcoin. Read this article to the end to find out the full news!

Potency of Decreasing Inflation

The report suggests that the expected decline in inflation in the coming months could increase the likelihood of an interest rate cut by the US Federal Reserve (The Fed), which could also provide a positive boost to Bitcoin prices.

10x Research highlights that although the official statement from the Fed remains flexible and does not explicitly mention the possibility of an interest rate cut in September, the Fed Chair, Jerome Powell, mentioned that if inflation expectations continue to decline, the possibility of an interest rate cut will become greater.

Inflation Report will be Released on August 14

10x Research estimates that the inflation report to be released on August 14 will show inflation falling below 3%. This drop in inflation, if proven true, could provide a breath of fresh air for the crypto market, especially Bitcoin, which is often considered a hedge against inflation.

With lower inflation, investors may feel safer putting funds into riskier assets like Bitcoin. This is because stable or increasing dollar purchasing power tends to reduce concerns about the depreciation of the value of investments in fiat currencies. 

In addition, falling inflation could also reduce pressure for the Fed to continue raising interest rates, which often has a negative impact on risk assets such as stocks and cryptocurrencies.

Gold Prices and Optimism about Bitcoin

Apart from inflation, 10x Research also noted that gold prices reached a record high. Gold, traditionally considered a safe asset, reflects cautious market sentiment, but is also optimistic about assets that can survive amidst economic uncertainty.

Rising gold prices are often an indicator that investors are seeking protection from economic uncertainty or a decline in the value of fiat currencies. In this context, Bitcoin is often referred to as “digital gold,” due to its limited nature and unaffected by government monetary policy.

With gold prices reaching record highs, many investors are starting to turn their attention to Bitcoin as an investment alternative. This belief is driven by the view that Bitcoin, like gold, can serve as a safe-haven asset, but with the potential for higher returns.

Comparison of Bitcoin and Gold

Although Bitcoin is often compared to gold, the two have different characteristics. Gold has been recognized as a store of value for thousands of years, while Bitcoin only appeared in 2009 and is still in the early stages of adoption.

However, there are several similarities that make Bitcoin and gold often compared. Both have limited supply. Gold is limited by the amount on earth, while Bitcoin is limited by its protocol with a maximum total supply of 21 million BTC. 

Additionally, neither is directly affected by government monetary policy, which makes gold and Bitcoin attractive to investors seeking protection from inflation and economic uncertainty.

However, Bitcoin offers several advantages over gold, such as ease of cross-border transactions and the potential to be used in a variety of technological applications, especially with the increasingly widespread development of blockchain technology.

Bitcoin's Future Potential

With inflation expected to decline and gold prices reaching record highs, many investors and analysts view Bitcoin with optimism. If inflation does fall as expected, and the Fed responds with interest rate cuts, this could be a powerful catalyst for Bitcoin price increases.

Additionally, institutional adoption of Bitcoin continues to increase, which could strengthen liquidity and long-term price stability. In recent years, large companies and financial institutions have begun to include Bitcoin in their portfolios, seeing it as a good diversifier.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement price Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.