Fidelity offers bullish views on Bitcoin amid rising dollar

Fidelity Investments’ digital assets subsidiary has released a research document titled ‘The Rising Dollar and Bitcoin’.

The study evaluated the future potential of Bitcoin relative to its relationship to traditional currencies. In particular, the report considers the largest cryptocurrency by market capitalization as one of the assets with no counterparty risk.

Fidelity emphasized Bitcoin’s importance as portfolio insurance as the Dollar Index rose about 17% year-to-date.

Bitcoin may soon stand in stark contrast to the path followed by the rest of the worlds currencies and fiat currencies: increasing supply, creating additional currencies and expanding central bank balance sheets. said the report.

Despite the general recession, the investment firm expressed optimism about Bitcoin’s future. As the report highlights, Bitcoin is very important in the current high inflation environment due to its fixed issuance and supply.

Market stress in the UK

Meanwhile, the study also looked at availability in the UK. It reflects various efforts by the government to revamp the beleaguered economy. Despite increased efforts to combat high inflation, central banks continue to face market stress and need to increase liquidity to contain financial volatility.

Some UK investors and traders were already aware of the potential for Bitcoin to escape the current situation as trading volumes between the British pound and Bitcoin reached record levels, the report says. . As you indicated, strengthen The US dollar is wreaking havoc on other countries like the UK, which could soon force the Federal Reserve to back off its tightening policy.

Fidelity has recommended further currency depreciation to ease the huge debt burden that has devastated many developed countries. The report describes Bitcoin as one of the few assets with no liability, no counterparty risk, and an immutable supply schedule.