Invest
Growing inflation may drive the price of bitcoin even higher
Central banks are turning their focus towards inflation, while investors consider flocking to cryptocurrencies.

Growing inflation may drive the price of bitcoin even higher
Central banks are turning their focus towards inflation, while investors consider flocking to cryptocurrencies.

As speculation grows about inflation in global markets, so too does the appeal of cryptocurrencies for those looking to hedge.
DeVere group CEO Nigel Green said that all eyes are on central banks as they look for further hints on asset-buying tapering as global inflation ramps up.
“Crypto investors will be eyeing the central banks this week amid a flurry of interest rate reviews,” he said.
“The Fed is expected to announce a taper, the Bank of England an interest rate rise, Norway likely to hint about its second-rate hike of the year, and the Reserve Bank of Australia could shift its guidance after last week letting its 3-year bond yield surge through the targeted 0.1 per cent.”
Ultimately, Mr Green expects the price of bitcoin and other cryptocurrencies to benefit from these cumulative shifts in monetary policy.
“This climate will boost bitcoin and other cryptocurrencies as with their provable limited supply cap, they are an intrinsically deflationary asset class,” he said.
Mr Green suggested that there was a growing consensus among the investor class that steps would be taken in response to growing inflation much faster than previously expected.
“Prices can be expected to be positively impacted as bitcoin and others are increasingly regarded as a hedge against inflationary pressures,” he said.
According to research done by crypto exchange Gemini earlier this year, 85 per cent of crypto investors saw appreciating assets as a smart investment during periods where the economy was being affected by inflation.
Among those surveyed, cryptocurrencies came second to property as a preferred hedge against inflation.
“Fast-growing cryptocurrencies such as bitcoin can be a strong inflation hedge against devaluing fiat currencies,” Gemini Asia-Pacific managing director Jeremy Ng explained.
According to Mr Green, the growing appeal of bitcoin as a hedge comes amid an increase in acceptance from institutional investors and financial institutions.
“Inflows from institutional investors continue to increase – bringing with them capital and expertise – and as providers continue to meet ongoing demand with new bitcoin-related investment products,” he said.
Noting recent comments by the United States Federal Reserve confirming that it had no intention of banning cryptocurrencies, Mr Green said that this acceptance that bitcoin is here to stay is not going unnoticed by both retail and institutional investors.
“That said, it’s highly probable that other cryptocurrencies will have more stringent regulatory oversight, yet bitcoin could be viewed differently by authorities partly due to its gold-like status.”
About the author

About the author


Cryptocurrency
New Cosmos ETF offers access to ethereum
Cosmos Asset Management has launched another crypto ETF in Australia. ...Read more

Cryptocurrency
1 in 9 Australians have purchased crypto in the last year
A consumer group has released new data into crypto-assets. ...Read more

Cryptocurrency
CBA hits pause on in-app crypto tool
CBA has paused the rollout of in-app cryptocurrency trading. ...Read more

Cryptocurrency
European Central Bank president says crypto is ‘worth nothing’
European Central Bank president Christine Lagarde has shared her views on the value of crypto and the importance of regulation. ...Read more

Cryptocurrency
Will ‘cryptogeddon’ follow the stablecoin crash?
The collapse of TerraUSD last week sent the crypto market into a panic, raising fears about broader financial implications. ...Read more

Cryptocurrency
UNSW receives largest known crypto donation to fund pandemic detection tool
UNSW Sydney has received the largest known cryptocurrency donation to an Australian higher education institution. ...Read more

Cryptocurrency
Three new crypto ETFs commence trading following setbacks
The new crypto-based ETFs have been launched on the Cboe Exchange. ...Read more

Cryptocurrency
Consumers spending more through crypto-linked payment options
Cryptocurrency exchange Crypto.com said that spending via its crypto-linked card had increased, particularly on fashion, transportation, hotels and dining. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Cryptocurrency
New Cosmos ETF offers access to ethereum
Cosmos Asset Management has launched another crypto ETF in Australia. ...Read more

Cryptocurrency
1 in 9 Australians have purchased crypto in the last year
A consumer group has released new data into crypto-assets. ...Read more

Cryptocurrency
CBA hits pause on in-app crypto tool
CBA has paused the rollout of in-app cryptocurrency trading. ...Read more

Cryptocurrency
European Central Bank president says crypto is ‘worth nothing’
European Central Bank president Christine Lagarde has shared her views on the value of crypto and the importance of regulation. ...Read more

Cryptocurrency
Will ‘cryptogeddon’ follow the stablecoin crash?
The collapse of TerraUSD last week sent the crypto market into a panic, raising fears about broader financial implications. ...Read more

Cryptocurrency
UNSW receives largest known crypto donation to fund pandemic detection tool
UNSW Sydney has received the largest known cryptocurrency donation to an Australian higher education institution. ...Read more

Cryptocurrency
Three new crypto ETFs commence trading following setbacks
The new crypto-based ETFs have been launched on the Cboe Exchange. ...Read more

Cryptocurrency
Consumers spending more through crypto-linked payment options
Cryptocurrency exchange Crypto.com said that spending via its crypto-linked card had increased, particularly on fashion, transportation, hotels and dining. ...Read more