Will Bitcoin Skyrocket Due to “Perfect Storm” of Macro Factors?

A new report from a digital asset research firm suggests that macroeconomic factors are creating a ”perfect storm” for a massive Bitcoin price increase. The report, stemming from Delphi Digital, notes these macro factors pave the way for significant Bitcoin gains.

Bitcoin may see a ”perfect storm” of macroeconomic factors

This comes as Bitcoin recently retook the psychologically significant $10,000 barrier. This increase is notable, seeing as Bitcoin is currently trading at $10,536. This means that previous reports that Bitcoin’s support over $10,000 was “destroyed” are now definitively disproven.

Moreover, the report from Delphi Digital suggests that there are numerous factors pointing to an upward movement in the price of Bitcoin. The firm argues that several different macroeconomic factors may further elevate the price of Bitcoin. However, one of these is supposedly key:

”First, and arguably most important, sentiment from global central banks took a drastic turn towards more dovish monetary policies. The Fed, ECB, BOJ, PBOC, and many others are now preparing market participants for more rate cuts and additional stimulus measures as they attempt to keep the current economic expansion going.

We at Toshi Times have previously covered how central bankers around the world are looking towards quantitive easing. What’s more, we have also gone through the effects this may have on cryptocurrencies. Recently, Anthony Pompliano said that quantitative easing in the EU would be ”rocket fuel” for the Bitcoin price.

A number of factors point to a rising Bitcoin price

In addition to this, the escalating trade war between the US and China could also play a part in increasing uncertainty. As such, Bitcoin could provide a safe haven for international funds during rising uncertainty. 

Nonetheless, the report also goes beyond international politics. It notes that the growing risk of devaluation of traditional currencies represents a ”long-term catalyst”. This long-term catalyst could reportedly see the price of Bitcoin and physical gold alike driven higher.

Part of the reason for this attributes to Bitcoin’s intentional scarcity. Furthermore, Bitcoin’s design means the cryptocurrency will consciously be able to act as a store of value. This has previously led many to refer to Bitcoin as a form of ”digital gold” – and Delphi Digital also turn to this moniker. 

Unlike gold, however, Bitcoin is still a relatively fresh market – according to Delphi Digital. This could supposedly prompt investors to look to the Bitcoin market, rather than the gold market:

“The relative size of Bitcoin’s market value compared to the investible gold market, for example, makes it a tempting opportunity for investors starving for assets with above-average growth potential as well.”

In summary, the report notes that Bitcoin is currently experiencing a ”perfect storm” of macroeconomic factors. These factors could see Bitcoin’s price increase dramatically, as ”extreme monetary policies and rising geopolitical tensions” continue to heat up.