$100k For Bitcoin Soon: Has The FED Triggered A Supercharged Boom For BTC? Here’s Why
Anjali Belgaumkar21 Sept 20242 min read
Jack Mallers, founder and CEO of the Chicago-based Bitcoin payment provider Strike, expressed his view that the U.S. presidency does not have a significant impact on Bitcoin’s future. He said that Bitcoin will likely continue to rise in value as the U.S. dollar weakens, driven by ongoing government spending and economic policies. According to Maller, the president’s identity is irrelevant because both political parties contribute to the growing deficit and inflationary pressures, which ultimately support Bitcoin’s growth.
As reported by Savvy Finance, Maller has been vocal about his concerns regarding a potential sovereign debt crisis. He believes the U.S. deficits are unsustainable, and this mounting debt will contribute to the dollar’s decline. He said that while Bitcoin may face short-term challenges in the event of a prolonged and painful recession—where all assets, no matter how strong, could sell off—its long-term prospects remain strong due to the broader economic climate.
Furthermore, Maller discussed a recent move by the Federal Reserve that sent shockwaves through the financial world. The central bank’s unexpected 50-basis point rate cut, its first in four years, has stirred debates about Bitcoin’s ability to endure periods of economic instability. Maller said that Bitcoin’s behavior is closely tied to its hash rate, which plays a crucial role in price fluctuations.
Bitcoin’s Pump From $20k To $70k
He said that Treasury Secretary Janet Yellen made some big decisions about adding more dollars into the economy in late 2023. This move had a huge impact on Bitcoin’s price. This was when Bitcoin’s price shot up quickly, jumping from $20,000 to $70,000. Maller believes this was directly linked to what Yellen was doing.
However, after Yellen stopped making major decisions, Bitcoin’s price stayed mostly flat, moving sideways from March or April 2024 until now. He pointed out that Bitcoin’s price seems to depend a lot on what happens with these big economic decisions. Without any new actions, Bitcoin has remained steady, reflecting the market’s uncertainty.
He said,
“I’m so confident that we’re going to see probably the greatest asset bubble in the history of humanity. They’re going to have the highest deficit and debt in the history of humanity, which has to correlate with asset prices because that’s the only way they can afford it.”
This ongoing uncertainty inevitably raises questions about future trends, including Bitcoin price predictions.
Also Read: US Election 2024: Who’s Better for US Crypto Market Donald Trump or Kamala Harris?
