If bitcoin is a gold-like asset that is supposed to protect an investment portfolio against rising consumer prices, or inflation, then why is it falling?
Bitcoin’s price fell for a second straight day on Friday after Federal Reserve Chairman Jerome Powell acknowledged he “would be concerned” by tightening financial conditions, as rising U.S. government-bond yields put upward pressure on borrowing costs.
While Powell said he doesn’t expect higher inflation to persist over the long term and that the central bank is still “a long way from our goals” of an economic recovery and lower unemployment, he did express concern that prices for goods and services could rise in the short term as economic activity rebounds from depressed levels.
Yet bitcoin was down more than 3% at $48,395 on Friday, according to CoinDesk, some $10,000 below February’s record $58,000 level.
Watch the video above to learn more about the evolving perception of bitcoin and how investors and traders are treating it - and looking to profit from it.