BTC Will Rise By $20,000 If US Defaults On Debt Obligations – Featured Bitcoin News
Geoff Kendrick, head of currency research at banking institution Standard Chartered, recently said that the price of bitcoin is likely to jump by $20,000 in the event that the US defaults on its obligations. According to Kendrick, while bitcoin is likely to rise when the US defaults, other cryptocurrencies such as ethereum are likely to decline.
US Debt Default is a ‘low probability’ and ‘high-impact event’
As fears grow that the US government could default on its debt obligations, Geoff Kendrick, a head of forex research at Standard Chartered, said such an event would send the price of bitcoin (BTC) up by more than $20,000. as a “low probability and high impact event”, he nevertheless suggested that the top cryptocurrency’s reputation for performing well when markets are down, as well as its safe haven status, means that the nearly 70% price increase is possible.
However, the Forex analyst said that he believes that the increase will not begin immediately after the default. Instead, the rally is likely to be preceded by a $5,000 price drop before jumping by $25,000. According to Kendrick, only the price of bitcoin is likely to follow that path, while other cryptos such as Ethereum are likely to fall when the US defaults.
“So actually the optimal trade would probably be long bitcoin, short ethereum. A mix like that would probably be a good expression of that,” Kendrick said.
BTC to top $100,000 by end of 2024
As recently reported by Bitcoin.com News, Treasury Secretary Janet Yellen warned that the United States government is likely to default on its obligations on June 1 if Congress fails to raise or suspend the debt limit. According to Yellen, such an event would “produce an economic and financial disaster.”
In addition to predicting the $20,000 jump in price, Kendrick recently said that BTC would top $100,000 by the end of 2024. In a recently published note, the analyst is said to have listed the US banking crisis, the halving event and the rate hikes by the Federal Reserve among some of the factors that are likely to help drive up the price of BTC. However, the memo is said to rule out the much talked about US debt default.
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
