Despite the fact that the Bitcoin price is currently struggling to recover from its correction and is currently trading sideways, veteran investor Luke Gromen has indicated that he believes the king coin will rise in the coming months due to the favorable macroeconomic backdrop.
In a new interview with crypto journalist Natalie Brunell, Gromen highlighted the US government’s nearly $35 trillion debt.
With the national debt at record highs, the macro expert believes there is nothing the Fed can do to stop the resurgence of inflation, which will ultimately drive investors to seek shelter in valuable assets like Bitcoin to preserve their wealth. He described it as follows:
“I’m super bullish on Bitcoin for at least the next six to twelve months, tactically and strategically, because whether the Fed hikes or cuts doesn’t matter. In my opinion, inflation and budget deficits are getting higher. The only way this doesn’t happen is if the dollar weakens. Then the budget deficits will actually be lower.
So my choices are: higher interest rates [en] more inflation, lower interest rates [en] more inflation or deficits down with a weaker dollar [betekent] more inflation [en] more humiliation.
I think Bitcoin is doing very well and critically the fundamentals are there, but if you look at the positioning, there is still a lot of skepticism about Bitcoin, and there is still over $6 trillion in money market funds. There’s still a lot of concern, there’s still a lot of belief that the Fed is, ‘Oh, inflation is picking up again, the Fed is going to come in and bring inflation back down.’
No no no no no. They might try and you might get a pullback… If we go from the Fed cutting twice this year to the Fed raising this year, you’re probably going to get a sell-off in Bitcoin and industrial stocks, equities, maybe even gold… for about a week or two.
And then there will be the recognition of, ‘Oh God, the government bond market is not functioning well, we can’t have that.’ So that will start the discussion and ultimately the 6% interest rates will be more inflationary than the 5.25% with a lag because there is $35 trillion in debt and it is now rising as a percentage of GDP and Fed rate hikes will cause them to rise faster as a percentage of GDP.
So I’m super bullish on Bitcoin because I have fundamentals: they’re rising, it’s inflation; they don’t walk, it’s inflationary; they don’t walk, it’s inflationary; they’re cutting, it’s inflationary.
If they want to keep the wheels on the cart, they must weaken or continue to weaken the dollar. That’s all good for Bitcoin.”
Source: https://cryptobenelux.com/2024/03/24/investeringsexpert-is-de-komende-zes-tot-twaalf-maanden-super-bullish-op-bitcoin/
