Is the Fed Hurting Bitcoin’s Potential?

Economist Timothy Peterson argues that the Federal Reserve’s aggressive monetary policy tightening is significantly hindering Bitcoin’s price growth. In a recent post on X, he claims that these actions are negatively impacting the U.S. economy and preventing Bitcoin from reaching its true potential.

According to Peterson, the Fed has unnecessarily shrunk the money supply, leading to deflationary pressures. This shrinking of the money supply is causing a slowdown in economic activity, with falling prices, reduced consumer spending, and slowed growth – all signals of a weakening economy, not one strengthening.