Despite Short-Term Weakness, Bitcoin Macro Trend Still Positive
Since peaking in late August, the price of Bitcoin has undergone a strong decline that has brought the cryptocurrency as low as $9,800. At its worst, BTC was trading more than 21% below its local year-to-date high.
Despite this short-term weakness, analysts remain convinced that the long-term trend of the cryptocurrency remains intact.
One Bitcoin analyst, who works for Ikigai Asset Management, recently reported that Bitcoin is still poised to become “the future.” He referenced a series of macroeconomic trends that show that while the cryptocurrency may be weak in terms of its ticket price, its intrinsic value is increasing as traditional economies seem weak.
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch
Bitcoin’s Macro Trend Still Positive
Hans Hague, head of quantative strategy at crypto fund Ikigai Asset Management, still asserts that BItcoin is the future despite any weakness in its price over the short term.
He released an extensive thread on the matter on October 5th, in which he outlined the macroeconomic and geopolitical trends showing that the need for Bitcoin is greater than ever.
It’s extensive, but here’s the long and short of it:
The U.S. is currently at a point in time where it needs to continue printing money en-masse due to macroeconomic trends, which is creating a potential global dollar shortage. This may explain why there hasn’t been any “real” inflationary trends as of yet.
The U.S. is in this gridlock as a result of an inability to let the stock market drop, the damaging effects of raising policies interest rates, and many more trends.
Bitcoin is a natural solution in a world where fiat money is constantly being debased by central actors.
Why is #Bitcoin the future? Let me paint a picture for you.
The national debt is not only growing at an alarming rate, it’s growing faster than GDP. pic.twitter.com/YifYrdAwyK
— Hans HODL (@hansthered) October 5, 2020
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward
Many Acknolwedge These Trends
While Hague laid it out for his followers, there are notable investors and executives around the corporate and Wall Street world that are starting to acknolwedge these trends.
First and foremost is Michael J. Saylor of MicroStrategy. The company CEO recently made headlines when he pushed for the company to adopt Bitcoin as its primary reserve asset.
Prior to that, Paul Tudor Jones, a Wall Street billionaire, embraced Bitcoin. He announced in a research note shared with his clients and in an CNBC interview that he has allocated 1-2% of his net worth and company funds to BTC. He sees it as a proper hedge against extraordinary macroeconomic trends like the ones we’re seeing today.
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Despite Short-Term Weakness, Bitcoin Macro Trend Still Positive