Ever since the Great Financial Crisis in 2008 and 2009, major central banks have adopted an incredibly accommodative stance toward monetary policy in order to boost the economy, a strategy that was exacerbated by the coronavirus pandemic. While it was previously not an issue, today we are experiencing surging prices across the U.S. economy as a direct result of the money printing.

And now, to curb soaring inflation for everything from groceries and gas to rent and used cars, interest rates are ticking up. But the Federal Reserve's recent hawkish stance could flip and turn dovish in the not-too-distant future, and this would be an extremely bullish situation for one asset in particular -- Bitcoin (CRYPTO: BTC). 

To be clear, as long as the central bank continues hiking interest rates in order to slow down inflation that's at 40-year highs, I see Bitcoin remaining under pressure. This is because in this environment, investors lean toward safer assets, like Treasury bonds and even cash instead of more speculative financial instruments like growth tech stocks or cryptocurrencies. It helps explain why the Nasdaq Composite, a tech-heavy stock index, has lost 17% in 2022, about double the S&P 500's drop (as of this writing). 

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Source Fool.com