US Dollar Will Crash “Faster and Harder,” Says Pro-Bitcoin Economist
They both cited a weakening US dollar outlook as their primary cause of their Bitcoin investments.
The fall in national savings occurred despite a brief uptick in personal savings, the Yale faculty added. It showed that the Americans failed to outrun a record expansion in the national deficit budget. That happened particularly after the US government approved $1,200 relief cheques to unemployed Americans.
“In summary, the vice is tightening on a still-overvalued buck,” Mr. Roach wrote.
“With the national budget deficit exploding towards 16 percent of gross domestic product this financial year, according to the Congressional Budget Office, the economies plunge is only a sign of what lies ahead,” the economist wrote.
A tightening US dollar upside could leave Bitcoin in a better-than-expected bullish bias, also noted Mr. Roach but back in June 2020.
Released at Tue, 29 Sep 2020 08:16:58 +0000
A new sharp pullback move in the US dollar market is insufficient to log a full-fledged upside breakout.
Mr. Roach worried that the net national savings rate in the US has become negative territory for the first time since the 2008-09 economic crisis. It did so with an unusually higher downside momentum, falling 3.9 percentage points from the prior quarter — the sharpest decline since 1947.
Mr. Roach stated that he anticipates the Federal Reserve’s expansionary approach to further trim the greenback. Since Bitcoinist also covered earlier, the US central bank’s decision to keeping interest rates near zero until 2023 and target inflation over 2 percent, would maintain the US dollar under risks of further declines.
That included billionaire hedge fund manager Paul Tudor Jones who allocated 1-3 percent of his $22 billion worth portfolio to Bitcoin Futures. Also, a public-traded firm MicroStrategy purchased $425 million worth of BTC in two separate rounds.
US dollar is showing signs of downside continuation after validating 94.74 as resistance. Source: TradingView.com
So says Stephen Roach, the former chairman of Morgan Stanley Asia. The pro-Bitcoin economist wrote in an op-ed that the US dollar could fall by as much as 35 percent by the end of 2021 due to strengthening foreign currencies, rapid macroeconomic imbalances in the US, and the end of the American hegemony over international reserve assets.
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