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New Fidelity report flags ‘stark contrast’ between Bitcoin and fiat currencies

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Bitcoin’s (BTC) future could “stand in stark contrast to the rest of the world,” asset supervisor Fidelity Investments predicts.

In a current analysis piece, “The Rising Dollar and Bitcoin,” released Oct. 10, Fidelity Digital Assets, the agency’s crypto subsidiary, drew a line between Bitcoin and different currencies.

Bitcoin “does not correspond to another person’s liability:” Report

While hardly a stranger to bullish takes on Bitcoin, Fidelity continues to publicly reiterate its religion within the largest cryptocurrency regardless of the close to year-long bear market.

In the report, analysts acknowledged simply how far Bitcoin as an asset has diverged from what’s at the moment thought-about the norm. In the brand new high-inflation atmosphere, Bitcoin’s fastened issuance and provide are of specific significance.

“Therefore, bitcoin may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take – namely the path of increased supply, additional currency creation, and central bank balance sheet expansion,” they defined.

Related: Bitcoin price ‘easily’ due to hit $2M in six years — Larry Lepard

While the report’s title locations affect on the strength of the United States dollar relative to different world currencies, it was the disaster within the British pound that Fidelity highlighted because the type of occasion unattainable on a Bitcoin commonplace.

Summing up, the firm forecast that “more monetary debasement may be needed to alleviate the high debt load among developed economies, while recent events in the United Kingdom have shown counterparty and liability risks in the system, making monetary intervention and doses of liquidity features that are not likely to go away any time soon.”

“Comparatively, bitcoin remains one of the few assets that does not correspond to another person’s liability, has no counterparty risk, and has a supply schedule that cannot be changed,” it concluded:

“Whether those properties begin to look more attractive is ultimately up to investors and the market to decide.”

Bitcoin month-to-month returns chart (screenshot). Source: Coinglass

Volatility stays crypto-sector base case

Elsewhere, Fidelity’s optimistic tackle the present state of the Bitcoin community itself diverges from the nervousness of its crypto-sector friends.

The agency’s round-up of analysis for the month of October pointed to the BTC illiquid provide hitting a ten-year document, in addition to surging community fundamentals.

As Cointelegraph reported, in the meantime, in its newest weekly e-newsletter, “The Week On-Chain,” on-chain analytics agency Glassnode concluded that volatility can be doubtless what characterized Bitcoin going forward.

“The Bitcoin market is primed for volatility, with both realized and options implied volatility falling to historical lows. On-chain spending behavior is compressing into a decision point, where spot prices intersect with the Short-Term Holder cost basis,” it concluded, summarizing the information factors coated.

More broadly, merchants are preparing for a violent exit of Bitcoin’s narrow trading range within weeks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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