Given the past month or so has been pretty bearish for Bitcoin, it’s understandable as to why everyone has lost their faith in the leading cryptocurrency. Not only has this month-long consolidation around $8k not good for the market but it has given the Bitcoin haters more fuel to be more vocal on their outlook on the world of crypto, Peter Schiff being one of them.
The technicalities of the leading cryptocurrency might not be pretty to look at right now but international factors seem to be putting bitcoin on the right path. According to the prominent crypto analyst and theorist Majin, the global United States dollar squeeze will be highly favourable for the flagship cryptocurrency.
Most people interested in the political world will either have their eyes stuck on Brexit or the trade war between the US and China despite not really knowing what’s going on behind the scenes.
The US dollar is going through a bit of a crisis all over the world right now and it seems that there isn’t anything the Federal Reserve can really do about stopping this.
As reported by CCN:
“Logic dictates that bitcoin would be a casualty of this U.S. dollar crunch. If the smart money is in dire need of the greenback, it would make sense to sell their bitcoin holdings in exchange for U.S. dollars.”
The crypto analyst went onto explain why the US dollar squeeze is a good thing for the space of cryptocurrency.
“Bitcoin’s unique selling proposition is being a storage of value entirely uncorrelated to the financial system or central bank policies.”
As the dominances start to see losses though, Majin believes that hedge funds and investors will start running to bitcoin in order to protect their finances.
In his opinion, “Bitcoin is also less risky for large capital because it’s such an early and young asset. Hence, the recent super-exposure and acceptance of BTC with hedge funds or financial analysts in general.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!