- Bitcoin analyst notes that increased money supply would trigger Bitcoin’s bull run.
- Banks become compelled to increase the money supply during economic recessions.
- Michael van de Poppe classifies the current Bitcoin market situation as “a perfect storm.”
Bitcoin analyst Michael van de Poppe has predicted a Bitcoin bull run believing an economic recession and the subsequent increase in money supply will drive the surge. Van de Poppe also pointed to Bitcoin’s historical performance during past recessions, noting its correlation with gold as a hedge against inflation and monetary expansion.
According to the analyst, central banks must increase the money supply during economic recessions to combat a negative economy. Van de Poppe pointed to historical examples between 2014 and 2015 when Bitcoin price rallied following a slight economic recession and a subsequent monetary expansion.
Because of Bitcoin’s tendency to expand during economic recessions, Van de Poppe expects upward momentum in the crypto market. He noted the cryptocurrency’s correlation with gold, which many investors consider a haven against monetary expansions and inflation. However, he said Bitcoin has the edge in times of economic uncertainty, due to the likelihood of increasing monetary expansions in the coming years.
A “Perfect Storm” Brewing for Bitcoin
Van de Poppe’s bullish prediction comes from his expectation of a severe global economic recession soon. He cited crucial events around the globe, like wars, societal unrest, and the increasing gap between the rich and the poor, as potential triggers for a recession.
The Bitcoin analyst also pointed to macroeconomic factors that are causing liquidity expansion, which should lead to a bullish trend for risk assets like Bitcoin. With China tweaking its liquidity operations and the Federal Reserve’s treasury buybacks, Van de Poppe expects liquidity expansion in the global economy that would boost Bitcoin’s price.
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” crossorigin=”anonymous”>Van de Poppe calls the current Bitcoin market trend “a perfect storm” ahead of a bull market. He listed the Fed’s actions, global liquidity, an upcoming recession, extreme societal differences, social unrest, and the growing lack of trust in financial institutions as signals for a Bitcoin rally. He thinks Bitcoin is currently undervalued but predicts its price will significantly increase when more people turn to it for safety against an impending economic downturn.
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