Monetary policy tightening by the U.S. Federal Reserve has been pushing the greenback higher, but the dollar’s day in the sun could be limited. Alternative assets like bitcoin may be pushing higher as inflationary pressures could be subsiding.
At least, that’s the hope for bullish bitcoin investors as the leading cryptocurrency has been following traditional assets as of late. The flip side of the trade, of course, is that the Fed will continue its hawkish stance in order to keep inflation under control.
In the meantime, an early October rally in the stock market is allowing bitcoin and the rest of the cryptocurrency market to follow in tow. More bullishness could be ahead for bitcoin if the Fed sees economic growth suffering from more interest rate hikes, potentially sending the country into a recession.
However, the current rally could be a temporary one, giving the dollar another path to more upside. For now, however, bitcoin has pushed past the $20,000 mark again after a short-lived summer rally.
“Bitcoin (”BTC":https://www.coindesk.com/price/bitcoin/) continues to build bullish momentum, hoping that financial stability risks and signs of economic slowdown will force the U.S. Federal Reserve to pivot away from aggressive liquidity withdrawal measures," CoinDesk reported. “However, some observers are unconvinced the Fed will abandon or dramatically slow the so-called liquidity tightening anytime soon, and they expect renewed dollar strength.”
Feeling Bullish? Check Out BITO
The latest price declines in 2022 may be producing more skeptics in bitcoin investing. However, there’s an alternate solution via bitcoin futures.
Investors who want to get bitcoin exposure and to avoid investing via a cryptocurrency exchange can opt for the ProShares Bitcoin ETF (BITO ). The fund provides exposure to bitcoin futures, tailing the price movements of the leading cryptocurrency on a normal market exchange.
Furthermore, the fund is actively managed, giving investors the peace of mind of knowing that their investment is in the hands of seasoned portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.
BITO has also been staying in lockstep with bitcoin prices so investors don’t have to worry if the fund will deviate from the cryptocurrency’s price movements. BITO provides this tactical exposure while staying within the regulatory framework of the traditional financial market, adding to its safety.
For more news, information, and strategy, visit the Crypto Channel.