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Bitcoin’s Potential Rise Tied to Weakening U.S. Dollar, Analysts Say

Bitcoin’s Potential Rise Tied to Weakening U.S. Dollar, Analysts Say

Cryptodnes2024/08/20 09:54
By:Cryptodnes

Analysts suggest Bitcoin could solidify its role as digital gold, but this shift may impact the U.S. economy.

Zach Pandl from Grayscale Investments believes a weakening U.S. dollar might drive Bitcoin to unprecedented highs. He anticipates that the dollar could significantly depreciate over the next decade or sooner, depending on upcoming election outcomes and economic policies.

Pandl, formerly a macroeconomic strategist at Goldman Sachs, warns that as U.S. debt rises—currently around $33.2 trillion, far exceeding GDP—the government might struggle with either defaulting or inflating the currency to manage debt.

This situation could enhance Bitcoin’s appeal as it remains immune to inflation due to its fixed supply of 21 million coins.

READ MORE:
Big Institutions Offloading BTC: Massive Deposits Flood Binance

While the prospect of Bitcoin benefitting from a weaker dollar is intriguing, it’s important to note that the cryptocurrency market remains highly speculative. Investors should consider that Bitcoin’s volatility and its status as a relatively new asset class could introduce significant risks.

As such, despite its potential for growth, Bitcoin’s long-term stability as a store of value compared to more established assets like gold is still under debate.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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