Analyst projects that bitcoin will reach USD 100,000 if “people lose faith in the dollar”.
Considers that the demand for the dollar could fall if the Fed fails to lower inflation.
Predictions that bitcoin (BTC) will hit $100,000 in the long term are still continuing among the bulls, even though it fell to the $19,000 level these days. This new level means a depreciation of 70.5% from its historical maximum of almost USD 68,000 reached 10 months ago in November 2021.
Cryptocurrency analyst Nicholas Merten told his half a million YouTube followers that bitcoin could eventually hit $100,000. He reckons such a rise would be like gold’s in the 1970s. But first considers that it is likely to continue to fall to perhaps 85% from its all-time high.
“We could start to see asset trading very similar to gold. I’m going to make the case today for how bitcoin could very well be that asset. Especially after going through a steady 75% decline or so far. And it will probably go through a decline of around 80-85% at a minimum,” he said on his YouTube channel called DataDash.
He argues that after bitcoin finishes falling, “really green pastures” will come. He expects it to hit six figures towards $100,000-$200,000, just as he recalls many people projected in last year’s bull rally.
The reason he envisions this future for bitcoin is that “people start losing faith in the dollar, the world’s reserve currency.”. Given this scenario, he estimates that the demand for the cryptocurrency will grow, which will cause its price to increase. He remarks that such a situation would be similar to how people moved their capital into gold in the 1970s.
For the analyst, if people prefer bitcoin instead of the dollar, it would reach USD 100,000
If the US Federal Reserve (Fed) cannot lead the way in cooling inflation, we are going to lose faith not only in the dollar. We are going to lose faith in the world range of fiat currencies.
Nicholas Marten, cryptocurrency analyst on the DataDash YouTube channel.
The specialist concludes that “if there is no stability in the dollar, there will be a lot of global liquidity that will want to go somewhere.” “And that’s exactly what happened to gold in the ’70s,” which is why its price rose back then like bitcoin might, he notes.
Meanwhile, the dollar is at its strongest in 20 years as demand for risky assets such as bitcoin continues to decline. Nevertheless, if the Fed fails to solve inflation, Marten thinks the dollar could fallfollowing other fiduciary currencies that are being devalued like several in Latin America and the euro. He understands that this scenario would favor the demand for bitcoin and its price.
Jerome Powell, the chairman of the Fed, said this week that solving US inflation “will take time”, as CriptoNoticias reported. This year the American power is going through the highest inflation of its last 40 years.