According to Dan Tapiero, co-founder of DTAP Capital, conditions have formed in the market for a long-term strengthening bitcoin rate.
There are several macroeconomic factorswhich will stimulate an increase in demand for cryptocurrency. The main culprit is the Federal Reserve System, which injects money into the economy, thereby devaluing it.
We are on the verge of economic turmoilthe situation will be similar to the crisis of the late 1980s. The value of American assets will fall by about half, which will cause a massive transfer of capital from government securities to gold and bitcoin.
An entire asset class redefined almost overnight by covid / # WFH.
Total value of all US #commercialrealestate is $ 16 trillion.
Now entering largest bear mkt since late 80s?
50% price drop wipes out $ 8 tril.
Major econ drag / knock on effects huge.
Rates stay 0%, + # GOLD
and #BTC pic.twitter.com/U5luVR8FM6
- Dan Tapiero (@DTAPCAP) September 14, 2020
Tapiero stressed that during the last twofor a half years, we have seen BTC consolidation. After that, most likely, we will see an explosive growth in the value of the largest cryptocurrency. Investors need to be patient.
A similar point of view is shared by manyinvestors. For example, Galaxy Digital CEO Mike Novogratz and Morgan Stanley chief strategist Ruchir Sharma also believe that Bitcoin and gold will continue to hit their highs in the long run.
Rate the publication