Crypto would profit from possible 35% dollar fall
Stiven Rouch, former chairman of the Asian Morgan Stanley department and senior researcher of Yale, said that all cryptos including BTC would profit from the US dollar collapse.
Financial crisis as a push for cryptocurrency
Rouch claimed that the US national currency may face 35% fall in relation to foreign fiat that is related to the bullish forecasts of Chinese yuan and euro.
China and Eurozone represent 40% of the US trading, and dollar will avoid falling only in case both of these currencies see no significant growth.
“The US economy has been suffering from significant macroeconomic imbalance, namely from low domestic savings and the chronic scarcity of the current account. Dollar will fall very sharply”, said Rouch.
The expert further noted that the problems are moving from “being bad to being the worst”, as the US will do the utmost to reduce the budget deficit.
Rouch underlined that cryptos and gold will benefit from the weakness of the world fiat, although crypto markets are too small to cover major movements in the global currency market which turnover is around $6.6 trillion.
Rouch believes that the USA is turning away from globalization and aims for separating from the rest world, and he calls this “the deadly combination”.
He warns the investors of that the collapse is “almost unavoidable” and may happen in the nearest years.
Crypto assets and world events
Bitcoin’s price is currently on the lowest levels over the last 3 weeks since, rumor has it, stocks are expecting the upcoming collapse.
The bearish trend of BTC follows the tough week in the stock market as Beijing for the second consecutive day reports the record high cases of coronavirus, so the second wave of disease seems to be approaching.
The total amount of cases around the world reached 8 million at the moment of publishing. Governments over the world have implied programs for stimulating coping with the crisis, and the unlimited liquidity of cash money have helped to restore stocks, gold, crypto and obligations. Bitcoin has surpassed stocks and other traditional assets gaining up to 150% in June, 2020.
The year 2020 has brought many unpredicted events. Thus, COVID-19 is the breaking point of this year, and, probably, the whole decade.
But even despite the pandemic has had a major influence on our lives, some social unrest could not be prevented by the quarantine.
After George Floyd had died at the hands of a policeman from Minneapolis, the fight for the black citizens’ rights has gained global importance. Nevertheless, this social movement should go on as it struggles for justice in the USA and other countries of the world.
The world of cryptocurrencies kept pace with the unrests as a lot of major industry players demonstrated their strong support for the protesters.
But how can the BTC itself help to solve the present day socio-economic issues? It is hard whether Bitcoin will actively participate in revolutionary movements like BLM. But no matter if it is vital or not, any support would be important at times like these.
Last year, during the protests in Hong-Kong, a lot of demonstrators turned to crypto as a mean of investment as financial and communication systems of the country were disrupted. But with the implementation of stricter measures, the Internet connection was also interrupted, and this curt of the protesters’ support.
So all we have to do is to observe and trust the justice will prevail.