According to Bitfinex’s head of derivatives department, Jag Kooner, Bitcoin is becoming increasingly popular as a safe-haven asset in countries with high inflation rates. This is due to the current macroeconomic risks, which have made investments in Bitcoin, gold, and silver more relevant.
Kooner predicts that continued high inflation rates will result in elevated interest rates and a slowdown in monetary policy, leading to disappointment for investors.
He also noted the potential for stock markets to fall in the face of geopolitical risks and moderate earnings growth, with his estimate for the S&P 500 index at 4200 points, representing a 17.5% decrease from the closing level on February 24.
Additionally, Tal Zacon, co-founder of TRES, believes that the introduction of spot Bitcoin ETFs makes it easier for traditional finance investors to use Bitcoin as a hedge against high inflation.
Zacon also cited the upcoming halving event as a powerful tool against inflation.
