Robin Brooks, chief economist at the Institute of International Finance (IIF), sparked controversy by calling Bitcoin (BTC) a “meaningless asset.” Brooks attributes BTC's fluctuations in the market to FED policies rather than its real value.
“Bitcoin continues to prove over and over again that it is a meaningless asset,” Brooks said. He noted that recent market pricing for the Fed has become more dovish, coinciding with a rally in Bitcoin. “Bitcoin is another futures contract based on the Fed. You're better off just trading in futures,” he added.
Brooks' comparison of Bitcoin to the Fed's futures contract shows that he believes BTC's value and market behavior are heavily influenced by the Fed's monetary policies rather than its own fundamentals.
The economist constantly emphasizes the correlation between BTC and the FED's interest rate policies in his social media posts. His observations are supported by the fact that Bitcoin's price tends to fall when the Fed maintains a hawkish stance and rise when the outlook is dovish.
Brooks also rejects the idea of using Bitcoin as a store of value or diversification tool. He has previously referred to Bitcoin as a “bubble asset” that is sensitive to changes in monetary policy.
*This is not investment advice.