Yeh believes BTC will benefit from the dollar devaluation as an inflation hedge:
The more money is printed, the higher the value of Bitcoin and all of this tends to go up, but I think it’s the opposite. I don’t think Bitcoin is increasing in value, it’s just the value of the dollar that is decreasing.
BTC recovered $ 49,000 after the Federal Reserve announced that interest rates would not be affected. However, up to three increases are expected in 2023. The Fed also accelerated the taper by reducing bond purchases. Some market analysts believe this is not a good sign for cryptocurrencies and other risky assets, the prices of which are expected to rise as more coins are printed.
BTC is currently trading at $ 51,505 with the bulls attempting a convincing breakout.
When asked about the ongoing correction between Bitcoin and other risky assets, he found that the top cryptocurrency tends to move in parallel, a fact that is often trumped by crypto critics.
Bitcoin has been trading low across tech stocks. Hedge fund manager Brian Kelly recently forecast that both Bitcoin and Nasdaq will trade higher from 2022.
However, he also said that it was “certainly important” to use crypto as part of one’s portfolio. He also noted that investors can easily buy a fraction of the cryptocurrency, but buying stocks typically requires a substantial amount (except on platforms like Robinhood).
He sees payments and transfers as the largest use case. Unlike traditional financial institutions, cryptocurrencies are accessible 24/7, Yeh noted.