Grayscale: Low Inflation Could Open the Door to New Highs for Bitcoin

Grayscale Research President Zach Pandl has drawn attention with his bullish comments on Bitcoin (BTC).

Grayscale Research President Zach Pandl stated that Bitcoin’s response to the US Consumer Price Index (CPI) report fell short of expectations.

Speaking to Cointelegraph on August 14, Pandl said that the lower-than-expected core inflation in the US presents an opportunity for Bitcoin to retest all-time highs.

The US Bureau of Labor Statistics (BLS) released July’s Consumer Price Index (CPI) data on August 14. The data showed that the annual inflation rate was 2.9%, the lowest level since 2021.

He described this as “significant” and stated that it could allow the US Federal Reserve (Fed) to begin cutting interest rates.

As the dollar weakens, risk appetite will increase

Pandl stated that the interest rate cut is an important condition that will allow the dollar to weaken and Bitcoin to test all-time highs again. He also emphasized that the incoming data could be a signal for crypto investors that the Fed may cut interest rates sooner.

According to CME FedWatch, futures markets reflect expectations of at least a quarter point rate cut at the Fed meeting in September. Current interest rates are targeted at around 5.5%.

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