Grayscale explained why Bitcoin will be in demand
Director of the research department at Grayscale Investments, which manages digital assets for clients, Zach Pandl explained why Bitcoin will continue to be in high demand.
We believe that stagnant inflation and unsustainable fiscal deficits will continue to support demand for a store of value such as Bitcoin,” Pandl said.
According to Zack, the US authorities are unlikely to reduce the key rate in the foreseeable future due to inflation reaching 3.48%. Against this background, Bitcoin will become a more popular asset for saving savings, primarily due to the halving, which is scheduled to take place on April 19. By halving the reward for adding blocks, the Bitcoin inflation rate will decrease by 50%.
Pandl acknowledges that the 19% increase in real interest rates seen in the US in March could negatively impact the cryptocurrency market in the short term. However, in his opinion, Bitcoin will not lose its attractiveness over a long period of time.
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