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
OKX launches automated trading bots for Australian crypto traders
Cryptocurrency platform OKX Australia has introduced two automated trading bots aimed at helping local traders manage their digital asset portfolios around the clock. Read more

Cryptocurrency
New survey reveals high crypto adoption in Australia amid housing affordability concerns
A new survey by Protocol Theory, in partnership with cryptocurrency exchange Easy Crypto, has found that nearly 50% of Australians have bought or are considering buying cryptocurrency in the next ...Read more

Cryptocurrency
Investing in digital assets: A new avenue for earning
The digital age has introduced a plethora of new investment opportunities, ranging from cryptocurrencies and blockchain technology to digital art and tokenized assets. For investors in Australia ...Read more

Cryptocurrency
Navigating the crypto landscape: A beginner's guide to investing in Australia
Cryptocurrency has taken the world by storm, offering an innovative platform for digital assets and investments. In Australia, the crypto market has seen substantial growth, attracting both seasoned ...Read more

Cryptocurrency
Cryptocurrency losses mount as hacks and scams continue to plague the industry
The cryptocurrency industry has lost over $400 million to hacks in 2024 so far, with the decentralized finance (DeFi) sector being the most vulnerable, according to research by experts at Smart ...Read more

Cryptocurrency
Institutional investors bolster cryptocurrency allocations amidst growing confidence
A recent study by London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund, has revealed a significant shift in the mindset of institutional investors and wealth ...Read more

Cryptocurrency
Institutional investors set sights on expanding crypto portfolios in the coming year
New research from London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund manager, indicates a significant positive shift in institutional investors' attitudes ...Read more

Cryptocurrency
BingX reports significant growth and innovation in 2023 amidst industry challenges
BingX, a prominent crypto exchange, has disclosed notable achievements in 2023, amidst a backdrop of global economic uncertainty and sector-specific turbulence. The company has managed to double its ...Read more

Cryptocurrency
OKX launches automated trading bots for Australian crypto traders
Cryptocurrency platform OKX Australia has introduced two automated trading bots aimed at helping local traders manage their digital asset portfolios around the clock. Read more

Cryptocurrency
New survey reveals high crypto adoption in Australia amid housing affordability concerns
A new survey by Protocol Theory, in partnership with cryptocurrency exchange Easy Crypto, has found that nearly 50% of Australians have bought or are considering buying cryptocurrency in the next ...Read more

Cryptocurrency
Investing in digital assets: A new avenue for earning
The digital age has introduced a plethora of new investment opportunities, ranging from cryptocurrencies and blockchain technology to digital art and tokenized assets. For investors in Australia ...Read more

Cryptocurrency
Navigating the crypto landscape: A beginner's guide to investing in Australia
Cryptocurrency has taken the world by storm, offering an innovative platform for digital assets and investments. In Australia, the crypto market has seen substantial growth, attracting both seasoned ...Read more

Cryptocurrency
Cryptocurrency losses mount as hacks and scams continue to plague the industry
The cryptocurrency industry has lost over $400 million to hacks in 2024 so far, with the decentralized finance (DeFi) sector being the most vulnerable, according to research by experts at Smart ...Read more

Cryptocurrency
Institutional investors bolster cryptocurrency allocations amidst growing confidence
A recent study by London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund, has revealed a significant shift in the mindset of institutional investors and wealth ...Read more

Cryptocurrency
Institutional investors set sights on expanding crypto portfolios in the coming year
New research from London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund manager, indicates a significant positive shift in institutional investors' attitudes ...Read more

Cryptocurrency
BingX reports significant growth and innovation in 2023 amidst industry challenges
BingX, a prominent crypto exchange, has disclosed notable achievements in 2023, amidst a backdrop of global economic uncertainty and sector-specific turbulence. The company has managed to double its ...Read more