Bitcoin’s recent price action increasingly resembles gold as investors respond to renewed concerns over US fiscal sustainability, CoinShares said in its latest market update.
The crypto asset rose from above $60,000 to the upper-$70,000s, briefly touching $82,000 after Fed Governor Christopher Waller delivered more dovish comments on monetary policy.
However, CoinShares said the ongoing US-Iran war and monetary policy could cap the rally. Kevin Warsh’s recent remarks at Jackson Hole were seen as hawkish and prompted markets to price roughly a 66% chance of a September rate hike.
Still, Waller later countered that recent inflation data showed encouraging disinflation and said he would favor holding rates steady if the August data confirms the improvement.
According to CoinShares, the market’s rate-hike expectations appear too aggressive in light of labor market data and growing disagreement among Fed officials over whether inflation or employment should carry more weight.
