How will the collapse of the US dollar affect the bitcoin rate?

Former head of the Asian representative office of investment bank Morgan Stanley Stephen Roach expects a record dropUS dollar by the end of 2021.

This analyst recently published an article in which he predicted the collapse of the US national currency rate by 35-40%. Thus, Washington's economic hegemony will end.

Roach predicts that this year the deficitthe federal budget will reach 16% of GDP. The expert refers to data from the Congressional Budget Office. Moreover, the burden on the state treasury will increase throughout the entire 2021.

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Pressure on the financial sector will provokeacceleration of inflation and depreciation of the dollar. Now the American currency is supported by stimulating measures from the authorities, but this policy will not be able to continue for long.

Precious metals and cryptocurrencies will benefit from a weakening dollar, Roach said. Bitcoin is now trading 148% higher against the dollar than it was in mid-March 2020.

However, this asset has enormous potential, as some institutional investors already recognize. Therefore, it will continue to grow in price.

Many observers periodically pay attentionon the inverse correlation between Bitcoin and the dollar. When the US currency begins to fall in price, BTC begins to grow. Accordingly, when capital leaves the cryptosphere, the exchange rate of the US dollar strengthens.

At the same time, the former top manager of Morgan Stanleyurges not to hope for a rapid rise in the value of bitcoin. The share of cryptocurrency in the global market is still very small. It will increase, but this process may drag on for many years.

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