Zach Pandl, Managing Director of Grayscale Research, stated in an interview that due to continued overspending and high interest rates by the US government, assets that store value such as Bitcoin will continue to be popular. We expect continued inflation and unsustainable budget deficits to drive demand for value storage assets (such as Bitcoin) to continue to grow. Given the current high inflation rate, the Federal Reserve is unlikely to lower interest rates in the near future. However, upcoming events such as the Bitcoin halving scheduled for April 20, as well as accelerated economic growth and increased adoption of cryptocurrencies, will drive up the price of Bitcoin.
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