Bitcoin and the US dollar have a powerful relation. Whenever the government prints money and the inflation rates increase, Bitcoin’s value also increases. This is why the US Mayor said that Bitcoin would keep rising as the government keeps printing money. He also said that Bitcoin is the future monetary system as there are a limited number of tokens. After all the Bitcoin is mined, there will never be more Bitcoin. And with the ever-increasing demand, the token’s price increase will be Parabolic.
The US Mayor’s statement
The US Mayor recently tweeted that Bitcoin’s value will continue rising as the feds keep printing the dollar. Let’s understand the logic behind this. Bitcoin is measured in the dollar and as the value of the dollar falls, the price of BTC subsequently increases. It’s just the inflation effect where the price of every good increases due to the falling dollar.
We should also note that Bitcoin’s demand is rising, and even without the government printing money, the price of Bitcoin is bound to increase. Just imagine whole countries using and storing Bitcoin in their wallets, governments making it a legal tender, traders trading the asset while hodlers holding their coins. All this suggest one thing that no one can stop the meteoric price rise of Bitcoin. And it is about to happen in this decade.
Bitcoin’s price recovery
After the price of Bitcoin made an all-time high of around $65k, its price rebounded to $29k as markets corrected itself. Many were hoping that the price would even go down to $20k and even $15k, but Bitcoin started to rally again after the B-word event. In fact, the price rallied to $40k and, after a few tries, were able to break to new levels after a long time. At present, BTC is at $49.5k and is approaching the $50.5k level again, which is going to be critical. Yesterday, it got rejected at the price, and if it is able to cross that level, we could see BTC move to new highs again.
What are your thoughts on the US Mayor saying that Bitcoin will keep rising as the feds keep printing money? And do you think that the markets will recover again? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: El Salvador is not seeing Bitcoin adoption even after becoming a legal tender
