Fed’s Eric Rosengren Expects Bitcoin To Be Under Pressure

Bitcoin hits a new all-time high of $ 56,425. Its market capitalization crosses $ 1 trillion for the first time in history. Despite the strong rebound in cryptocurrency, the Federal Reserve Bank of Boston remains unimpressed with digital assets.

The President of the Federal Reserve Bank of Boston says he was personally surprised that Bitcoin continues to thrive.

According to him, there is no long-term use case for digital currencies like Bitcoin.

He also notes that China and Sweden were on track to implement their own CBDC digital currency. He points out that the United States was not far behind in the process.

According to him, the Boston Fed is actively studying the possibility of introducing a CBDC in the United States.

Most investors who allocate to Bitcoin do not do so to transact through digital currency. Bitcoin is often compared to gold as a suitable inflation hedging asset.

Tesla CEO Elon Musk even commented on Tesla’s recent $ 1.5 billion Bitcoin purchase, saying the reasoning behind this purchase did not directly reflect his opinion. “When a fiat currency has negative real interest, only a fool wouldn’t look elsewhere,” he said on Twitter.

According to Musk, having Bitcoin is simply a “less dumb” form of liquidity than cash.

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