Delphi Digital Study: Slow Macroeconomy Growth Will Boost Bitcoin’s Price and FAANG Stocks
Ever since the start of the Bitcoin bear market last year, a number of analysts and market experts have been trying to figure out some of the key factors that will allow Bitcoin to surge once again.
In this regard, it should be pointed out that Delphi Digital recently published a study which claims that the global macroeconomy will help spur the growth of the cryptocurrency industry in the coming few months – despite the two sectors being completely independent of one another.
A More Detailed Look at the Matter
According to Delphi Digital’s aforementioned report, a potential swell in the adoption of “growth investing strategies” amongst various mainstream firms could help in the increased adoption as well as sale of BTC in the coming few years.
In this regard, Delhi's research team explained that as things stand, the most popular choices for growth-centric investors currently consist of options such as FAANG (along with certain other Silicon Valley startups).
2/ Many public + private pension funds use discount rates between 7-8% to calculate their future liabilities. A world of sub-3% yields on Treasuries (not to mention the nearly $10T of govt debt globally carrying negative yields) is simply not enough to satisfy such requirements. pic.twitter.com/UnE4kiaapD
— Delphi Digital (@Delphi_Digital) April 12, 2019
Explaining the company's stance in regards to the aforementioned matter, the Delphi report states:
“Given the outlook of slower economic growth and subdued earnings forecasts, the backdrop appears favorable for growth to outperform. If so, bitcoin may be poised to catch a bid as investors reach for riskier assets with significant price appreciation potential.”
Bitcoin is Primed to Break Out
Delphi Digital isn't the first major company to suggest that growth factors associated with the macroeconomic market can possibly have an immense impact on the value of BTC in the near future. For example, Brendan Bernstein, Founding Partner at Tetras Capital, recently echoed a similar sentiment and stated that he was quite confident that the flagship currency's long-term prospects were extremely healthy.
Elaborating on the subject, Bernstein added that the US Federal Reserve's recent decision to make use of quantitative easing (QE) strategies could aid in the wider adoption/ growth of BTC.
Lastly, it should be pointed out that while policies such as QE have proven to be catalysts for the crypto industry (at large) over the course of the past decade or so, some analysts are of the opinion that the overutilization of QE could result in the traditional economy fading – thereby providing BTC and other premier alt-assets with a lot of mainstream financial traction.
In closing out this piece, it should be pointed out that people like Bernstein believe that a number of macroeconomic/political factors can allow digital currencies to outperform conventional fiat assets – mainly because the U.S. population at large seems to be shifting towards ideas like democratic socialism, modern monetary theory, which have resulted in the global superpower incurring higher sovereign debts than ever before.
Live Bitcoin (BTC) Price:
1 BTC/USD =$28,066.3790 change ~ -1.18%