Robin Brooks, former chief economist at the Institute of International Finance, continues to insist that Bitcoin is “just another bubble asset” despite the substantial gains that were recently recorded by the flagship cryptocurrency.
The economic expert has downplayed the recent rally, arguing that it was simply the result of an interest rate cut implemented by the Federal Reserve.
Last March, Brooks riled up Bitcoin advocates by claiming that the leading cryptocurrency had zero diversification benefits and zero yield. He also stated that Bitcoin could not serve as a viable store of value.
After Bitcoin recently came close to registering a new record high, Brooks faced a new wave of “I-told-you-soing” from Bitcoin supporters who unearthed his 2023 social media post.
Brooks, however, continues to stand by his words, clarifying that his original post was not a directional call on the cryptocurrency’s price.
Bitcoin plunged sharply in 2022 after the Fed started aggressively hiking rates to tame out-of-control inflation.
In early 2024, Bitcoin surged to a new recorded high due to the ETF boom. In September, the Fed implemented its first rate cut since 2020, helping to boost the prices of risk assets such as Bitcoin.