
Economist Timothy Peterson blames Fedโs tight monetary policy for stalling Bitcoinโs price growth by up to 50%.
Despite low unemployment, rising BNPL grocery purchases signal deeper economic stress, says Peterson.
Economist Timothy Peterson believes Bitcoinโs price is being held back by poor decisions from the U.S. Federal Reserve.
In a recent post on X, Peterson said the Fed has made a big mistake by tightening monetary policy too much. According to him, this move is hurting the U.S. economyโand stopping Bitcoin from reaching its true potential.
Is the Fed Making the Economy Worse?
Peterson explained that the Fed has reduced the money supply too aggressively, which is now causing deflation. He pointed out that falling prices, lower spending, and slowing growth are signs that the economy is weakeningโnot strengthening.
โThe Fed still doesnโt realize the real issue is its own policy,โ Peterson wrote.
He believes the U.S. economy is shrinking because there isnโt enough money circulating. This situation makes it harder for both businesses and consumers to thrive.
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Real Struggles Behind Good-Looking Stats
While the unemployment rate is just 4.2%, a recent LendingTree survey shows that more than 25% of Americans are using Buy Now, Pay Later (BNPL) loans to buy groceriesโup from 14% last year. Peterson says this is proof that many people are struggling, even if the job numbers look good.
Bitcoinโs Growth Being Held Back?
Peterson claims that Bitcoin could be 30% to 50% higher today if the Fed had managed a proper โsoft landingโ for the economy. Instead, the current policies are limiting its price growth.
He warned that both the economy and crypto market could feel the effects of these policy mistakes for years. Investors, he says, should be cautious and make selective decisions moving forward.
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FAQs
Economist Timothy Peterson says tight Fed policies are slowing growth and holding Bitcoin 30โ50% below its potential.
Deflation reduces spending and growth, making it harder for businesses and consumers to thrive, says Peterson.