Heavily followed crypto trader Michaël van de Poppe anticipates a significant surge in Bitcoin’s BTC/USD value, drawing parallels with historical economic cycles and the current state of the U.S. economy.
What Happened: Van de Poppe compared the current Bitcoin cycle to the gold cycle of the 1930s and the dot-com bust of 2000. He suggested that the impact of Bitcoin will be massive over the coming decades, negating the possibility of a potential crash.
“The markets are preparing for the biggest bull ever — the final bull before the big crisis happens,” he stated.
The trader also highlighted the weakening U.S. economy, attributing it to a failing economy and Federal Reserve policy. He pointed out the U.S. debt has surpassed $35 trillion, and the interest rates have been rising due to high inflation.
He also noted the declining impact of the U.S. as the world reserve currency, with more countries opting out due to the weakening dollar.
Why It Matters: Van de Poppe emphasized the importance of Bitcoin in a portfolio, stating it follows the pattern of gold in the 1930s and will likely be the “blow-off top of this cycle.” He also suggested the uncertainty surrounding the strength and weakness of the dollar, and the U.S. government would trigger people to buy Bitcoin and other assets.
He concluded by expressing his belief in the significant surge of Bitcoin from the rate cut policy and the likelihood of quantitative easing (QE). He also predicted the likelihood of decentralized Finance (DeFi) starting to soar due to people’s dissatisfaction with the current financial system.
The trader predicts a potential massive breakout either after unemployment data or Fed rate cuts. He also believes in seeing “an all-around crypto cycle where Real World Assets, dePIN, and DeFi are going to be the backbones of the actual adoption cycle. Not meme coins.”
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next:
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
