One of the biggest asset managers in the world, Fidelity, has always supported the use of Bitcoin. Whether it be in mining or enabling customers to include cryptocurrency in their retirement portfolio.
Employees were permitted to deposit Bitcoin into their 401(k)s (retirement accounts) at Fidelity Investments, the leading provider of retirement plans in the United States. Lawmakers and regulators have raised concerns about this choice, both then and now, as reported by Todayq News.
Democratic Senators Tina Smith, Elizabeth Warren, and Richard J. Durbin expressed dissatisfaction with Fidelity’s Bitcoin retirement plans. They further said that the industry has become more volatile, tumultuous, and chaotic.” The senators urged CEO Abigail Johnson to “reconsider its decision to allow 401(k) plan sponsors to expose participants to Bitcoin.”
The letter stated that it is now fairly evident the digital asset industry has “serious problems” in reference to the failure of the cryptocurrency exchange FTX. The market is full of “charismatic wunderkinds, opportunistic fraudsters, and self-proclaimed investment advisers” that push financial products with almost no transparency.
A World Bank report predicted the current global economic slowdown and that central banks, as a result, are raising rates at a pace not seen in the last 50 years.
It will be interesting to see how Bitcoin, which was created in 2009 after the housing crisis of 2007–2008, responds to the current type of economic situation and the upcoming recession
Long-standing prophecies have stated that during periods of recession and high inflation, Bitcoin will do exceptionally well. BTC did experience a significant decrease, though, in light of the tremendous selling pressure. It declined from its record-high levels of $69,000 and above to its current levels below $16,000.