Bitcoin Poised to “Greatly Benefit” from the Macro Events Unfolding Right Before Our Eyes
- Bitcoin is a new form of money.
- The first native digital currency of the internet.
- A crypto asset that is potentially becoming a store of value.
- These aspects of bitcoin are what makes the leading cryptocurrency so valuable.
Currently, Bitcoin adoption is still far from mainstream but in the past decade we have come a long way and in the next ten years, it’s only going to go up.
Bitcoin’s price is the driving factor for now as it went parabolic not once but three times. We are now onto our fourth such cycle that will surpass last ATH at $20,000. This high is expected to push Bitcoin’s market cap past trillion dollars.
Bitcoin adoption and reward halving are the micro factors behind BTC’s surge. But as the leading cryptocurrency starts gaining momentum, macro events as noted by Morgan Creek’s Anthony Pompliano also starts becoming a factor that will drive its price and store of value feature.
Global Economy Outlook is Bleak
Trade wars are one such factor. Two largest economies in the world, the United States and China are engaged in a trade war that continues to escalate, all the while the US is threatening the EU with new tariffs and barely avoiding one with Mexico, while looking to add more countries to this list.
EU, meanwhile, is having its own issues in the form of Deutsche bank announcing 20,000 job cuts. Other banks like Barclays, UBS, BBVA, and Credit Suisse appears to be facing major issues as well that could turn into a domino effect, resulting in a widespread financial crisis.
Moreover, central banks in Japan and Europe have cut down the interest rates in the negative.
Another prominent bleak scenario running around the world is slowing global growth. The World Bank continues to slash global growth forecasts, the reasons being slowing growth in emerging markets, slow pace of global trade growth, and falling business confidence cited by World Bank President David Malpass.
Adding to these mounting global issues are record levels of debt. US corporate debt is over 70% of GDP last seen during the Global Financial Crisis and China’s eye-popping 150% which has never been seen before.
This means the recession is coming. The US Treasury yield curve also signaled to this when it inverted in the second quarter of this year.
With the Federal Reserve and other authorities around the world resorting to currency manipulation and pumping money into this system, things are only going to get worse.
The outlook of the global economy is bleak and markets won't keep on going up or sideways. This, unfortunately, means investors doesn’t have many options.
Time for plan ₿
A decentralized digital asset that can’t be manipulated by any government, central bank or financial institution.
Numerous times during the currency manipulation, trade war, and other geopolitical and economic events, Bitcoin price appreciated in value. Interestingly, this asset also has a negative correlation with gold and the S&P 500.
While the governments and authorities continue to make things worse for the economies, Bitcoin is unaffected and producing block after block, untouched by outside forces.