The FED has recently said that when unemployment gets to 6.5%, that they will begin to raise interest rates... What affect do you think this will have on bitcoin prices?
Instinctively, an interest rate hike combined with genuine austerity/spending cut policies by governments (pigs might fly) would make me bearish on commodities, in line with the drop in gold prices after the 1980 peak. Back then, traders could earn more profit in stocks than in shiny metal stuff, though. Bitcoin is far too novel to shoehorn into the same economic models that might apply to physical commodities, however, so the truthful answer has to be "I don't know".
