Grayscale exec predicts Bitcoin to skyrocket regardless of the US election outcome, citing long-term macroeconomic trends and potential dollar depreciation as drivers of growth.
In a recent update, Zach Pandl, managing director of research at crypto asset management firm Grayscale Investments, said that Bitcoin will skyrocket in the near term. He added that the crypto is poised to rally, irrespective of the outcome of the upcoming US election result. This statement has sparked discussions in the broader crypto market while highlighting his belief in the long-term potential of the digital asset.
Grayscale Exec Makes Bold Bitcoin Prediction
Pandl has offered these bullish remarks in a recent DL News interview. Meanwhile, the remarks come at a time when the U.S. dollar faces increasing challenges. He suggests that long-term macroeconomic trends will continue to unfold, regardless of who wins the US presidential race between Kamala Harris and Donald Trump.
Pandl, who has a background as a macroeconomics and markets strategist at Goldman Sachs, believes the value of the U.S. dollar could decline significantly over the next 10 to 20 years, if not sooner. This potential depreciation of the dollar in turn could lead to a substantial increase in Bitcoin’s value relative to the currency.
As the U.S. government continues to issue more debt, currently standing at nearly $33.2 trillion, concerns about the dollar’s stability rise. If demand for U.S. Treasury bonds falters, the government might resort to printing more money, leading to inflation. In such a scenario, Bitcoin, with its capped supply of 21 million coins, would emerge as a strong hedge against monetary debasement.
In addition, Pandl emphasized that the crypto’s rise to a trillion-dollar asset occurred during a period when the dollar was exceptionally strong. Besides, he hinted that a period of sustained dollar depreciation could propel the value of the crypto even higher.
This scenario, according to the Grayscale Exec, could lead to a significant influx of investment into the flagship crypto, further driving its price upward.
BTC’s Role In Financial System
While Pandl’s outlook is optimistic, not everyone agrees with his assessment. The idea that massive inflation is inevitable and that Bitcoin will be seen as a reliable store of value on par with gold remains a topic of debate. Pandl acknowledged that the crypto’s role as a bet against the U.S. dollar makes it more controversial than other cryptocurrencies like Ethereum.
Meanwhile, BTC was created as a response to and a rejection of the traditional financial system. Its decentralized nature and limited supply make it an appealing alternative for those concerned about the future of fiat currencies. However, its volatility and perceived risks continue to fuel debate within the financial community.
However, recently Fred Krueger also echoed a similar sentiment, predicting BTC to hit $1 million if the US Fed starts cutting the interest rates and inflation soars. As of writing, BTC price made some recovery and traded at $59,160, after falling to a low of $57,864 in the last 24 hours.
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