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The Federal Reserve Policy hurts Bitcoin, economist Timothy Peterson warns

Economist Timothy Peterson believes that the price of bitcoin hinders the bad decisions of the American Federal Reserve.

In a modern post on X, Peterson said The Federal Reserve made a big mistake by tightening the monetary policy too much. According to him, this step hurts the American economy – and prevents bitcoin from reaching its true potential.

Does the Federal Reserve make the economy worse?

Peterson explained that the Federal Reserve has reduced the width of the money strongly, which now causes a shrinkage. He pointed out that low prices, low spending, and slow growth are signs that the economy weakens – not reinforcement.

“The Federal Reserve still does not realize that the real issue is its own policy,” Peterson wrote.

He believes that the American economy is shrinking because there is not enough money. This position makes it difficult for both companies and consumers with prosperity.

Real struggles behind the good -looking statistics

Although the unemployment rate is only 4.2 %, a recent survey study shows that more than 25 % of Americans use purchase now, then pushing (BNPL) loans to buy groceries – from 14 % last year. This is evidence that many people are struggling, even if the job numbers look good.

Bitcoin’s growth hinders?

Peterson claims that Bitcoin may range from 30 % to 50 % today if the Fed Bank has enables the appropriate “soft landing” of the economy. Instead, current policies limit prices.

He warned that both the economy and the encryption market may feel the effects of these politics errors for years. He says that investors should be careful and make selective decisions to move forward.

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