Bitfinex Highlights Bitcoin’s Appeal as an Inflation Hedge

Bitcoin is gaining traction as a safe-haven asset in countries experiencing persistently high inflation. This was stated by Jag Kooner, head of derivatives at The Block.

The expert highlighted the macroeconomic risks this year, which make the purchase of the first cryptocurrency, gold, and silver relevant.

“A sustained level of inflation, above the comfort zone of central banks, will lead to a prolonged period of high interest rates. This scenario is likely to temper current market expectations regarding the imminent easing of monetary policy in developed markets, which may cause disappointment among investors,” the specialist explained.

Kooner pointed to the potential decline in stock markets in light of geopolitical risks and moderate profit growth. According to his estimates, the target for the S&P 500 index is 4200 points. This implies a 17.5% drop from the closing level on February 24 (5088.8 points).

According to TRES co-founder Tal Zekon, spot bitcoin ETFs facilitate the use of the first cryptocurrency as a means of protection against high price pressures for TradFi investors.

The expert also mentioned the upcoming halving in this context as a “powerful anti-inflationary tool.”

Tom Lee, co-founder of Fundstrat, has also cited the halving of miner rewards as one of the factors expected to drive bitcoin’s rise to $150,000 in 2024.

Earlier, Pantera Capital specialists, based on previous halving cycles, forecasted digital gold at $147,000 in 2025.