Bitcoin a 'good bet' if Fed continues easing to avoid a recession — analyst

cointelegraph.com:

Bitcoin (BTC) has the potential to become a "good bet" for investors if the Federal Reserve does everything it can to keep the U.S. economy afloat against impending recession risks, according to popular analyst Bitcoin Jack.

The independent market analyst pitted the flagship cryptocurrency, often called "digital gold" by its enthusiasts, against the prospects of further quantitative easing by the U.S. central bank, noting that the ongoing military standoff between Ukraine and Russia had choked the supply chain of essential commodities, such as oil and wheat, resulting in higher global inflation.

For instance, consumer prices in Europe jumped 5.8% year-over-year in February compared to 5.1% in the previous month, greater than the median economist forecast of 5.6% in a recent Bloomberg survey.

Interestingly, the energy sector was responsible for whipsawing anticipations by recording a 31% rise in prices, way higher than food and services.

Similarly, the U.S. consumer price index (CPI) advanced 7.5% year-on-year in January 2022, its highest level in nearly four decades.

Jack hinted that the ongoing inflationary risks of the Russia-Ukraine crisis could leave the Fed with two options.

First, they could hike interest rates aggressively to bring inflation down, thus raising recession risks. Or, they could continue their quantitative easing program only to burden the economy with higher consumer prices and a lower U.S. dollar purchasing power.

"If easing continues, inflation keeps going higher, they [Bitcoin and gold] seem good bets as long as a recession/crash remains avoided," Jack tweeted March 2, adding:

Jack's analogy appeared hours before Jerome Powell, the chairman of the Federal Reserve, confirmed that he would propose a 25