Unfazed By Falling Economy: Bitcoin Major Bull Run Looms — Analyst

With the US economy slowing down, many are looking at Bitcoin as the next big safe haven, much like gold did during the 1930s. And with the continued downturn in US economic data, many have been speculating on how cryptocurrencies, especially Bitcoin, would react to this perfect storm brewing.

Popular analyst Michaël van de Poppe says Bitcoin could very well follow the trajectory of the historic rise of gold during the Great Depression.

As views on US debt, inflation, and rising interest rates pile up, Bitcoin is increasingly touted as a hedge against economic uncertainty. Van de Poppe is among the analysts taking the view that Bitcoin will have its ultimate rally very soon and that it will be sustained via rate cuts and quantitative easing policies.

Comparisons To The Gold Standard

The analogy to gold isn’t all that far-fetched. During the 1920s, gold was still, under the Gold Standard, but once the economy went up in smoke during the 1930s, the precious metal surged. That may be exactly how it is playing out today with Bitcoin. Van de Poppe insists the four-year cycle for Bitcoin remains intact, just like during economic turmoil, how gold went through a predictable series of cycles.

The global economic landscape is shifting, with the US national debt more than $35 trillion and the Federal Reserve fighting to hike interest rates while trying not to continue the elimination of inflation. Most countries in the world, such as China, are getting their portfolio off the US dollar. That could weaken the greenback’s current stranglehold on the world, pushing more investors toward alternative assets like Bitcoin.

Bitcoin: A Bullish Breakout On The Horizon?

But Van de Poppe is not the only one who is super bullish about Bitcoin. According to him, the US economy will ready itself for one final huge bull run well in advance of the much-expected financial crisis. Rate cuts from the Fed expected later this month will be a last-ditch attempt to keep the economy alive. In fact, those cuts could power a surge in Bitcoin instead.

Investors in these uncertain times hedge into such assets as gold and Bitcoin. These assets have fared quite well during economic decline. In the light of such thinking, Van de Poppe voices the increasingly growing trend of analysts who look upon Bitcoin as a modern-day store of value.

The End Of The US Dollar’s Dominance

Probably one of the biggest movers of interest in Bitcoin is a weak US dollar. With inflation on the rise and interest rates doing the same, holding cash is not quite as attractive. That seems to have translated into a shift in how people and institutions keep their portfolios. Van de Poppe also mentioned how other currencies such as the Japanese yen and euro are gaining strength as the US dollar demonstrates weakness.

Featured image from Pexels, chart from TradingView

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