Headwinds or Tailwinds? How US Tax Reform Could Impact Bitcoin's PriceSince its inception in 2009, the price of bitcoin has risen sharply, climbing from zero to more than $2,900 earlier this month. However, the cryptocurrency has experienced this appreciation during a time of low interest rates and meager yields, a situation that could change in the coming years.
This period of ultra-low yields has lowered the opportunity cost associated with investing in bitcoin. While bitcoin's price has thrived in this environment, investors could find the cryptocurrency less attractive if interest rates and yields push higher.
Should yields, including dividend payments (regular payments made to stockholders for being owners of a company) increase, it could produce one more headwind for bitcoin's price by making dividend-paying stocks more appealing than the cryptocurrency. And all this seems to align with other challenges, such as the scaling issue, that the protocol is facing, which could also put downward pressure on the cryptocurrency's price.
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