Key facts:
-
Bitcoin traders should pay attention to “resolving the macroeconomic crisis.”
-
And its upward trend will depend on this, estimates investor Brandon Green.
According to the predictions of Brandon Green, organizer of TheBitcoinConf, Bitcoin (BTC) could benefit from the economic impact that Europe is experiencing. This was explained during his participation in this week’s podcast.
Green emphasized that The most important thing you should pay attention to, specifically for Bitcoin, is to solve the macroeconomic crisis in which we got ourselves. “You have a scenario at the moment where the European Union falters on its dissolution,” he said.
From his point of view, he asserts that there are two factions in Europe. On the one hand, he sees that there is a south (consisting of the “pig” countries between Portugal, Italy, Greece, Spain and other heavily indebted countries). On the other hand, imagine the north of the continent.
The specialist points out Many times pig countries were saved by “Super Mario” Draghi«, the former head of the European Central Bank (ECB), after the 2008 financial crisis.
“It looks like the EU may have pulled back at the time and what happened in the end is that the European Central Bank said [algo así como]: Good; We will simply buy up the debt of all these countries in southern Europe and become a reserve,” he claims, noting that this behavior continues.
“The European Central Bank is defending the southern EU countries,” he said, noting that this was good before. Precisely because it says that the European Union was an exporter and generated demand for the currency that came from abroad. But he points out that with the current crisis, some countries have erased their exports and are now also importers, which he understands. Caused a drop in demand for the euro.
European Debt Makes Bitcoin Predictably Bullish, According to Green
In this scenario where the euro weakens, it highlights that the problem with the European Central Bank is that it really only has one mandate. In order to maintain the stability of its currency according to its perspective, which confirms that it is starting to form Perverse incentives, such as raising interest rates in Europe.
But if they raise interest rates and stop buying debt from southern countries (which will protect the value of the euro), they stop printing money. So you are faced with a scenario where nobody is buying PIGS debt. And at that point, they default on their debt,” he deepens, stressing that it is very important to pay attention to this.
Greene explains it The reason this is so interesting for Bitcoin is that they believe that there are not many solutions for Europe. He understands that this context will generate a large number of printed money overnight. He estimated that “this is not supported by anything”.
It considers that money has to be derived from something, so Bitcoin is a great answer to that. In this sense, he expects it Bitcoin (BTC) futures price is ‘incredibly bullish’ and comes at the expense of places like Europeamid bullish and bearish expectations swirling in the cryptocurrency market, CriptoNoticias reports.
As mentioned Officials such as Cynthia Lummis may team up with the Bitcoin movement to get more votes or support. “I think this is going to be an interesting topic,” he concluded.
