Bitcoin back above $40,000. Today (March 17), the Bitcoin price increased by 4.12% and moved at $41,092.8.
The Dow closed Wednesday (March 16) with a gain of 518 points. Stocks on Wall Street continued their gains yesterday after the Fed raised interest rates for the first time since 2018.
- Dow Jones Industrial Average rose 518.76 points or 1.55% to close at 34,063.10 points
- The S&P 500 rose 95.41 points, or 2.24%, to close at 4,357.86.
- The NASDAQ rose 487.93 points, or 3.77%, at 13,436.55 points.
The Federal Reserve’s rate hike may not have much of an impact on inflation in the U.S., but investors may turn to Bitcoin as they have done before. Inflation is expected to remain high at 4.3% through the end of 2022, well above the Federal Reserve’s annual target of 2.0%.
Saving in the bank means losing purchasing power, leading many to consider Bitcoin as a hedge against those losses. Gemini co-founder Cameron Winklevoss argues that the best way to protect yourself is with cryptocurrencies, especially Bitcoin.
“Imagine paying a money manager 7.9% a year to do absolutely nothing with your money. That’s what inflation is. It’s a hidden management fee that comes with no return. Today, if you hold USD cash, you are paying the US government 7.9% to do nothing with your money. Scary.”
Moreover, turning to cryptocurrencies seems to be the only viable option for those affected by the invasion and sanctions, like Ukraine.
Ukraine has benefited from cryptocurrencies in many ways during the war, contributing more than $108 million in digital assets, and citizens can use digital coins as a means to move their money abroad.
In addition, regulatory clarity is expected for cryptocurrencies in the US and elsewhere. Many politicians have expressed support for cryptocurrencies, including Ukrainian President Zelensky, who is not lagging behind on cryptocurrencies.
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Thursday, March 17, 2022