Bitcoin's back to its volatile ways after its big move down late last week — but not for the reason investors expected.
Aside from the mismanaged crypto lenders (and FTX) that plagued the crypto market in 2022, the Federal Reserve's inflation-fighting rate hiking campaign played a big part in bitcoin's downward price pressure.
"The volatility will have a persistence if we're going to stay here at an elevated real rate environment," he told CNBC.
Even if the Fed doesn't raise interest rates anymore, the crypto space seems more focused now on real rates and keeping them elevated to fight inflation.
Having institutions with an established long core holding would act as a stabilizing force for Bitcoin, Connors added.
Persons:
it's, Mark Connors, 3iQ, We're, headwinds, Connors, It's, that've, Bitcoin, —, Jeff Cox
Organizations:
CNBC, SEC, Fidelity
Locations:
BlackRock