As inflation affects the value of Bitcoin, researchers are concerned about the strength of bitcoins in other macroeconomic factors.
The fall of FTX and related factors did more than raise or lower the price of Bitcoin
About BTC
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$23,304
Throughout Q4, compared to macroeconomic events such as rising rates, according to a new report.
In the report “State of Bitcoin Q4 2022” published on February 10, Messari research analysts Sami Kassab and Chris Collar found that the fall of the exchange caused a 25% drop in the price of Bitcoin.
The report shows that changes in the federal funds rate have very little effect on Bitcoin prices, even after the increase of 75 to 50 basis points.
It also shows that active wallets increased by 2% compared to the previous quarter as Bitcoin switched from centralized exchanges to storage wallets at the same time.
A research paper from the Federal Reserve Bank of New York earlier this week reached the same conclusion.
The February 8 paper looked at the link between macroeconomic news and Bitcoin prices, finding that inflation was the only variable that had a significant impact on Bitcoin prices.
The authors of the paper – research analysts Gianluca Benigo and Carlo Rosa – collected data from January 2017 to December 2022 to assess the impact of macroeconomic news on different asset classes.
The study considers several types of macroeconomic news, including inflation, the real economy, monetary policy news and forward-looking indicators.
Related: Bitcoin Price Hits 2-Week Low Amid 22.5K Losses Warning Means New Dip
The authors expressed their surprising results, concluding:
“The main result is that, unlike other asset classes in the US, Bitcoin is orthogonal to financial information and macroeconomics. This disconnect is puzzling as unexpected changes in discount rates should, in principle, affect the price of Bitcoin and interpret Bitcoin as an asset only a guess”.
Although the U.S. Federal Reserve. continues to increase prices at a record pace, Bitcoin is off to a good start until 2023, rising just under a third as it rises from $16,557 to $21,888, according to Yahoo Finance.
