The CEO of financial advisory firm Devere Group believes 2020 will be a breakthrough year for bitcoin, fueled by the US presidential election and the weak dollar. Amid political uncertainty and the Fed’s new inflation policy, investors will pile up in safe-haven assets unrelated to a particular country, like bitcoin.
2020: breakthrough year for Bitcoin
Devere Group CEO Nigel Green predicted last week that the US presidential election and the weak dollar would drive the price of bitcoin for the remainder of 2020. Following the Federal Reserve’s policy change on inflation , he also cautioned against investing in the stock market. Devere Group, established by Green in 2002, describes itself as one of the world’s leading independent financial advisory organizations with more than $ 10 billion under the advice of 80,000 clients in 100 countries.
Noting that “Bitcoin is already one of the best performing assets of the year, up around 70% since the start of the year,” said Green, “we can expect the biggest The world’s cryptocurrency is further fueled for the remainder of 2020 by the US Presidential Election and the weak US dollar, which will serve as high-octane price drivers. The price of bitcoin stands at $ 11,613 at the time of writing.
“There is always uncertainty about a US presidential election – but 2020 is seen by many as particularly important because not only will whoever wins be the CEO of the world’s largest economy, but they will take on that role as the world readjusts itself economically. to the global fallout from the coronavirus, ”Green said. “As uncertainty intensifies, investors will pile up in safe-haven assets, especially those that are not tied to any specific country, like bitcoin and gold.”
Recently, news.Bitcoin.com also reported that analyst and consultant Dan Popescu predicted how the outcome of the November presidential election could lead to a collapse of the dollar and an increase in the gold market. While polls for the 2020 presidential election currently show Joe Biden in the lead, the analyst explained that the US dollar stands to lose regardless of who wins the election and becomes the next president of the United States.
According to Green, “Bitcoin is currently realizing its reputation as a form of digital gold. Until now, the precious metal has been viewed as the ultimate safe haven asset, but bitcoin – which shares its main characteristics of being a store of value and scarcity – could potentially bring gold down in the future. its long-standing first place as the world becomes driven by the technological revolution… Decentralized, non-sovereign and secure digital currencies, including bitcoin, will become more attractive to investors as they will offer hedge against turbulence in traditional markets.
Analysts have questioned gold’s safe haven status, and Goldman Sachs recently warned that the US dollar is at risk of losing its status as a global reserve currency.
The CEO of the Devere Group added: “The impression of historic sums of helicopters that have been pumped into the financial system has devalued the dollar and raised fears of inflation”, stressing:
You can’t just print bitcoin.
On Thursday, the Federal Reserve announced a major policy change to “raise inflation”. Many investors will crowd into stocks, Green noted, warning of the “imbalance” in the stock markets. “This will fuel global equities that are already on fire,” Green explained, adding that “in this climate, holding bonds and sitting on cash simply won’t provide the returns investors are looking for. “
The market was waiting for this inflation policy announcement from the Fed, which prompted some companies to shift their cash reserves into bitcoin to hedge against inflation. One of them is Nasdaq-listed Microstrategy, which transferred $ 250 million of its cash reserves into bitcoin. The Fed’s new policy is also expected to increase the price of bitcoin, which some say could exceed $ 500,000.
As for the US dollar, Green continued, “The greenback could be boosted in the short term, but in the longer term, it is expected to be on a downward trajectory and may eventually lose its status. global reserve – and this environment will provide a sharp increase in the price of bitcoin. The CEO concluded:
This explosive combination, coupled with a growing number of millennials and Gen Z investors entering digital assets, could provide the perfect landscape for a multi-year bull market… History will show that 2020 has been a year of disruption for bitcoin.
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