Crypto News: After former Coinbase CTO Balaji Srinivasan shook the market with his Bitcoin price at $1 million prediction, there is yet another prediction on hyperBitcoinization, this time from an economist. These predictions are coming in the wake of a 65% Bitcoin price rise in the last three months. Rising concerns of dedollarization and US inflation worries make it an even more credible case for bullish momentum for the top cryptocurrency. Also, the crypto market showed confidence in Bitcoin after the US regional banking crisis led to one of the largest bank collapses since the 2008 economic recession.
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US Hyperinflation Followed By HyperBitcoinization
Economist Peter St Onge predicted that Bitcoin could pick up slowly if the U.S. dollar loses its status as the world reserve currency. Stating that a gold backed currency could be a game changer, the economist said the US could potentially face hyperinflation repercussions of a dollar collapse for the US economy. He added that such a system of gold backed currency is guaranteed to work. A gold backed external Chinese Yuan could dominate the global economy, with a one year countdown from the date of execution, he explained.
“This suggests hyperBitcoinization is inevitable as the world shifts first to the yellow metal (Gold) and then keeps learning about Bitcoin.”
Meanwhile, the U.S. Dollar Index (DXY) took a 0.62% jump on Monday despite the dedollarization worries, after four weeks of drop in value. This week, both Bitcoin and the US Dollar, which are inversely correlated, could see some volatility ahead of the release of the key economic indicator, the Consumer Price Index (CPI) data. It remains to be seen if the Bitcoin price could breach the psychological barrier of $30,000.
Interestingly, the Bitcoin halving, a highly important milestone for the crypto market, could potentially coincide with the onset of hyperinflation effects in the US economy, if China’s gold backed currency gains strength in 2024.
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