As Bitcoin consolidated between $29,000 and $30,000, a new BTC report came from Coinbase.
Coinbase, the largest US cryptocurrency exchange, stated in a research note that investors should own BTC in the long run.
Pointing out that it has become mandatory for investors to invest in BTC due to the current uncertainties in the global macroeconomic situation, Coinbase analysts said that Bitcoin should be seen as a protection against the depreciation and inflation in fiat currencies.
Analysts, led by Coinbase head of institutional research David Duong, also noted that economic growth in the US is stable, but the cost of paying off the country's debt is rising over the next few years due to rising government spending.
“We believe that as a result of the combined effect of expansionary fiscal and monetary policies, people should support Bitcoin over the long term as a hedge against undervaluation and wasteful spending in fiat currencies.”
Coinbase recently added in its report that the adoption of new technologies such as artificial intelligence (AI) is affecting the US economy and changing the structural factors that affect inflation.
*Not investment advice.