- A report titled “The ‘Collapse’ of the US Dollar—Reversal of the Estimated $8 Trillion Fed Inflation to Ignite a Gold-Rivaling Surge in Bitcoin, Ethereum, XRP, and Crypto Prices” suggests that the crypto market is poised for a major boom that will compete with gold.
- Jefferies analysts have warned that the Fed may need to restart its money-printing machine, potentially leading to the collapse of the US dollar and a Bitcoin price surge that could rival gold.
- A note written by Wood to clients suggests that he views Bitcoin and gold as “critical safeguards,” indicating that investors see these assets as a way to protect their wealth if inflation rises.
According to a recent report, trillions of dollars could exit the US financial system. Could these funds flow into Bitcoin and cryptocurrencies?
The Collapse of the US Dollar Could Ignite Cryptocurrencies!
Forbes highlights a potential transformation in the cryptocurrency market in its recent report. The report suggests that concerns about a crisis in the US dollar, driven by inflation fears, could result in a massive $8 trillion potential outflow from the United States’ financial system. This development could have far-reaching consequences for Bitcoin, Ethereum, XRP, and other major digital assets.
Forbes points out that a leak from a major technology company has shown the potential for a turnaround in the crypto world. However, the report acknowledges that XRP and other major cryptocurrencies have lost momentum as they entered 2023.
Forbes also draws attention to the predictions made by analysts at Jefferies, a reputable equity research and strategy firm, who predict the potential collapse of the US dollar due to the Federal Reserve’s need to restart its money-printing measures. This situation arises from the Federal Reserve’s massive $33 trillion debt burden.
Jefferies analysts have warned that the Fed may need to restart its money-printing machine, potentially leading to the collapse of the US dollar and a Bitcoin price surge that could rival gold. The reason behind this potential price increase is the belief that cryptocurrencies, especially in a scenario where excessive money printing devalues the US dollar, could emerge as safe-haven assets similar to gold.
Christopher Wood’s View
Forbes also refers to another interview with Christopher Wood, Chief Economist at Jefferies. Wood emphasizes that G7 central banks, especially the Federal Reserve, may face challenges in transitioning away from unconventional monetary policies. He suggests that these central banks may be inclined to continue expanding their balance sheets in some way.
Furthermore, a note written by Wood to clients shows that he refers to Bitcoin and gold as “critical safeguards,” indicating that he sees these assets as a means for investors to protect their wealth if inflation were to rise. Wood suggests that a mishandled exit from unconventional monetary policies could devalue the US dollar and benefit gold and Bitcoin.
The potential $8 trillion loss in the dollar could turn cryptocurrencies into a $10 trillion market, surpassing their current valuation of $1.09 trillion. With such bullish predictions, it’s worth noting that Google Bard and Microsoft Bing recently exposed a Forbes article that predicted a price of $59,472 for XRP.
