Investor Dan Tapiero thinks Bitcoin could skyrocket if the US economy takes a major downturn. He’s basing this prediction on how the US Federal Reserve might react.
A Slowing US Economy and Bitcoin’s Potential
Tapiero argues that trade tensions are hurting both the US and Chinese economies. He believes this could force the Federal Reserve to lower interest rates, similar to what China’s central bank recently did. This, he says, would send Bitcoin soaring. He envisions a scenario where Bitcoin could more than double in price, potentially reaching $200,000 or more. Currently, Bitcoin is trading around $97,000.
China’s Move and its Implications
China’s central bank recently cut its policy interest rate and lowered reserve requirements for commercial banks. This injection of cash into the market is a clear sign of trying to stimulate the economy.
Tapiero’s Previous Predictions
Earlier this month, Tapiero pointed out that US consumer confidence is at a level not seen since the 2009 financial crisis. He believes that the necessary government response to this economic weakness would be positive for Bitcoin. He summarizes this by saying that government attempts to fix the situation through monetary easing (“fiat debasement”) will benefit Bitcoin.
Disclaimer
Remember, this is just one investor’s opinion. Investing in Bitcoin and other cryptocurrencies is risky. Always do your own research before making any investment decisions.