New paper reveals Bitcoin’s surprising resilience toward macro factors

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Compared to macroeconomic factors like rate rises, data shows that the collapse of FTX and associated developments had a greater impact on the price of Bitcoin during Q4. In the meantime, if you are looking for the best crypto bonuses of this month, make sure to explore around CasinoDaddy’s pages. We have some of the finest selections in the crypto iGaming sector. 

Sami Kassab and Chris Collar, Messari research analysts, found that the collapse of the exchange led to a 25% drop in the price of Bitcoin in their “State of Bitcoin Q4 2022” study, which was released on February 10.

Even after increases of 75 and 50 basis points, the federal funds rate adjustments had a far lesser impact on the price of bitcoin, according to the analysis.

Additionally, it noted that due to the transfer of Bitcoin from centralized exchanges to self-custodial wallets during the quarter, the number of active wallets rose by 2% in comparison to the previous quarter.

This week’s previous Federal Reserve Bank of New York research study reached a related result.

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Inflation was the only factor that had a noticeable effect on the price of Bitcoin, according to a report published on February 8 that examined the relationships between macroeconomic news and the price of Bitcoin.

The authors of the article, research analysts Gianluca Benigo and Carlo Rosa, gathered data from January 2017 to December 2022 to examine how macroeconomic news affected different asset classes.

Inflation, the real economy, monetary policy news, and forward-looking indicators were only a few of the macroeconomic news categories that were considered in the study.

“The key result is that, unlike other U.S. asset classes, Bitcoin is orthogonal to monetary and macroeconomic news. This disconnect is puzzling as unexpected changes in discount rates should, in principle, affect the price of Bitcoin even when interpreting Bitcoin as a purely speculative asset,” said the authors in a recent statement.

Author: Bobby Parker