2020-8-31 22:35 |
The CEO of financial advisory firm Devere Group believes that 2020 will be a breakout year for bitcoin, fueled by the U.S. presidential election and the weak dollar. Amid political uncertainty and the Fed’s new inflation policy, investors will pile into safe-haven assets not tied to any specific country, such as bitcoin.
2020: Breakout Year for BitcoinDevere Group CEO Nigel Green predicted last week that the U.S. presidential election and a weak dollar will drive the price of bitcoin for the rest of 2020. Following the Federal Reserve’s policy shift on inflation, he also warned about investing in the stock market. Devere Group, established by Green in 2002, describes itself as one of the world’s leading independent financial advisory organizations with more than $10 billion under advice from 80,000 clients in 100 countries.
Noting that “Bitcoin is already one of the best-performing assets of the year, up around 70% year-to-date,” Green asserted, “We can expect the world’s largest cryptocurrency to be further fuelled for the rest of 2020 by the U.S. presidential election and the weakness of the U.S. dollar, which will serve as high-octane price drivers.” The price of bitcoin stands at $11,613 at the time of writing.
“A U.S. presidential election always stirs uncertainty — but 2020 is seen by many as particularly important as not only will whoever wins be the CEO of the world’s largest economy, they will be in that role as the world economically readjusts following the global fallout of coronavirus,” Green opined. “As uncertainty heightens, investors will pile into safe-haven assets, in particular those not tied to any specific country, such as bitcoin and gold.”
Donald Trump (left) and Joe Biden, 2020 U.S. presidential candidates for the November election.Recently, news.Bitcoin.com also reported that analyst and consultant Dan Popescu predicted how the outcome of the November presidential election could lead to a dollar collapse and a boost in the gold market. While the 2020 presidential election polls currently show Joe Biden in the lead, the analyst explained that the U.S. dollar stands to lose regardless of whoever wins the election and becomes the next president of the United States.
According to Green, “Bitcoin is currently realising its reputation as a form of digital gold. Up to now, the precious metal has been perceived as the ultimate safe-haven asset, but bitcoin — which shares its key characteristics of being a store of value and scarcity — could potentially in the future knock gold from its long-held top spot as the world becomes driven by the tech revolution … Decentralized, non-sovereign, secure digital currencies, including bitcoin, will become more attractive to investors as they will offer a hedge against turbulence in traditional markets.”
Analysts have been questioning gold’s safe-haven status and Goldman Sachs recently warned that the U.S. dollar risks losing its status as the world’s reserve currency.
The Devere Group CEO added, “Printing of historic sums of helicopter money that’s pushed into the financial system has devalued the dollar and prompted inflation fears,” emphasizing:
You can’t just print bitcoin.
On Thursday, the Federal Reserve announced a major shift in policy to “push up inflation.” Many investors will pile into equities, Green noted, warning of the “lack of balance” in the stock markets. “This will add fuel to global equities which are already on fire,” Green described, adding that “In this climate, holding bonds and sitting on cash will simply not provide the returns investors seek.”
The market has been expecting this inflation policy announcement by the Fed, prompting some companies to move cash reserves into bitcoin to hedge against inflation. One of them is the Nasdaq-listed Microstrategy, which moved $250 million of its cash reserves into bitcoin. The Fed’s new policy is also expected to boost the price of bitcoin, which some predict could be driven past $500K.
As for the U.S. dollar, Green continued: “The greenback could be in for a short-term boost, but in the longer term there are expectations it’s on a downward trajectory and that it could ultimately lose its global reserves status – and this environment will provide a powerful boost for the price of bitcoin.” The CEO concluded:
This explosive combination together with a growing number of millennials and Gen Z investors moving into digital assets could provide the perfect landscape for a multi-year bull market … History will show that 2020 was a breakout year for bitcoin.
Do you agree with Green? Let us know in the comments section below.
The post Bitcoin Will Break Out This Year, Says Devere CEO appeared first on Bitcoin News.
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