The hydrogen industry has been in focus since 2020, thanks to increasing concerns regarding climate change. Also, with governments worldwide aiming to reduce their carbon footprint over the next few decades, green hydrogen stocks have surged in popularity over the last two years. However, looming interest rate hikes and President Biden’s stalled Build Back Better bill have caused these stocks to lose momentum lately.
Facing several macroeconomic headwinds, including skyrocketing inflation rates, supply chain bottlenecks, and war between Russia and Ukraine, the hydrogen industry is expected to take a back seat in the near term. Bearish sentiment surrounding the hydrogen industry is evident in the Global X Hydrogen ETF’s (HYDR) 12.3% decline year-to-date.
