Founder of crypto investment firm Parallax Digital has suggested that Bitcoin is on the verge of a significant macro turnaround driven by a looming plunge in the purchasing power of the US Dollar.
Former hedge-fund manager, Robert Breedlove places Bitcoin at $12.5 million by 2031 – equivalent to $1 million based on today’s purchasing power. On September 13 during an on Altcoin Daily podcast he said:
I’m going to stand by that prediction today. I know the DXY [US dollar index] is way up recently but I sort of expect this thing to get volatile before it breaks down. If that is the case, then I have a matching Bitcoin price prediction of $12.5 million US per Bitcoin by the year 2031.
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Dollar purchasing power to collapse?
Breedlove effectively argues the relative demise of the current USD-based fiat currency system and an ascending Bitcoin standard. He claims the dollar is hyperinflated and could even drop to zero by 2035, at which point fiat currencies – in their current form – would cease to exist all together.
“A caveat there is that that would only be a $1 million Bitcoin price in 2020 dollars, so the purchasing power of 2020 at the time I made the prediction, would be the equivalent of $1 million US in Bitcoin,” he added.
Additionally, he noted that once the dollar hits zero versus Bitcoin, there will be no reason to price Bitcoin in Dollars. This scenario would be commensurate with a global monetary regime change in which countries with the most valuable assets hold a majority sway over an emerging order.
Somewhat counter-intuitively, the former hedge fund manager’s comments come at a time when Dollar strength is at levels not seen in two decades, with the DXY hitting 114.8 in September.
$DXY keeps falling – down to 112.2 from 114.8. The next area to watch for a bounce is 110, then 108. Beyond that, pivotal support at 103. Q4 will be interesting. pic.twitter.com/6G7Xyn4itF
— Chris on crUPto (@ChrisOnCrypto1) September 29, 2022
The Dollar Index is largely priced against the Euro (over 50%), which has conversely struggled to maintain its value following a slew of inadequate energy policy decisions, an unsustainable monetary situation, and the Russia-Ukraine war, all of which have facilitated a major economic crunch in the Eurozone.
The Euro is not alone in facing purchasing power collapse. To one degree or another, all fiat currencies are experiencing volatility as the world experiences the highest inflation rates seen in 40 years.
Last week, Bitcoin-sterling trading pairs experienced a spike in volumes across eight global exchanges, surging to a record high of 846 million pounds ($920 million) in a single day, per the latest research. Across fiat trading pairs, the spike hit $42.68 billion as of September 29, potentially suggesting that investors are dropping cash for Bitcoin.
Looming Bitcoin resurgence
Back in July, Coinshares’ Chief Strategy Officer Meltem Demirors shared positive comments about the top cryptocurrency’s future, going on record to say that Bitcoin would register all-time-highs within 24 (now 21) months. Demirors underlined strong absorption around $20,000, and that she did not expect Bitcoin to fall below $14,000.
The CSO predicted that the current agony would be but a distant memory by 2024.
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