Geoff Kendrick believes that if the US government announces its inability to repay its debt obligations, the bitcoin rate will show a 70% increase and exceed $40,000. The analyst called a possible default an unlikely event, which, however, could cause serious consequences. Therefore, investors who consider bitcoin a “safe haven” will start pouring their funds into the first cryptocurrency when the market falls.
If a default is declared, the surge in the bitcoin rate will not begin immediately, the analyst argues. The surge will be preceded by a fall of about $5,000 in Bitcoin, after which it will rise by $25,000. While Bitcoin will follow a bullish trend, the price of other cryptocurrencies, including Ethereum, may decline.
“The most optimal trades in this case would be long positions in bitcoin and short positions in ether. Such a peculiar mix,” says Kendrick.
Recently, Standard Chartered analysts predicted the end of the crypto winter, which means that Bitcoin has a chance to grow to $100,000 by the end of 2024. This forecast is fundamentally different from what was made by analysts at the end of last year. In December, experts at Standard Chartered warned that Bitcoin could drop to $5,000 in 2023.
Source: Bits
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