Crypto Valuations Depend on U.S. Economy's Ability to Achieve "Soft Landing", Says Grayscale Report
08/02 14:25
According to a report by digital asset manager Grayscale, macro factors pose the biggest risk to crypto valuations and the future of the market depends on the US economy achieving a "soft landing" to avoid a recession. Grayscale's research director, Zach Pandl, warned that if the economy falters or the Federal Reserve raises rates further, the crypto recovery may pause in the near-term. However, if economic data continues to support the soft landing thesis, major token valuations could catch up with the rally in other risky assets. Bitcoin may appreciate if the Fed decides to tolerate a long period of above-target inflation, given its role as an alternative non-sovereign money system and inflation hedge.
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