The price of Bitcoin has increased as a continuing financial crisis occurs. The benchmark cryptocurrency just topped $28,000,
traders and investors hoping that the Federal Reserve will delay interest rate rises or maybe cut rates as a major driver of the price surge. The biggest cryptocurrency is now trading on the Bitstamp platform for $27,713.
Using Twitter, economist Robin Brooks discussed the rise of Bitcoin. Bitcoin is just another bubble asset whose value fluctuates in reaction to Fed operations, the IFF economist said,
adding that there is nothing remarkable about the way it trades.
As a bubble asset that crashes when the Federal Reserve is serious about raising interest rates,
Brooks has previously addressed the erratic nature of Bitcoin in his comments. He emphasized how the lack of a purpose to retain money, advantages from diversification,
and yield in Bitcoin put doubt on the cryptocurrency's prospects for the future.
In a subsequent tweet, Brooks reaffirmed his position in response to criticism of his opinions. He maintained that Bitcoin remains just another bubble asset,
That the present gain in its value is the consequence of market expectations of a more dovish Fed stance. Vulnerable to the whims of the Federal Reserve's policies.
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