By Brenda Collins
With the United States Federal Reserve making plans to pump a whole $300 billion into the United States banking sector, this situation has made some people nurse the opinion the BTC is about to have a field day with an incredible surge in price. One such person is the Strike CEO, Jack Mallers.
While explaining his thoughts on the new move by the federal reserve, Mallers revealed that the U.S. dollar is about to enter an entirely new phase of inflation, a situation that will benefit Bitcoin and its likes. Mallet said this during an interview with CNBC’s Kelly Evans, explaining the general state of the United State’s financial sector.
Mallers predicted that there are reasons Bitcoin enthusiasts believe that the price will surge. One of his predictions is that the economy will enter a deflationary period solely favoring the cryptocurrency market.
Mallers also acknowledged the predictions made by Balaji Srinivasan, the former CTO of Coinbase, according to Srinivasan, who said last week that the U.S. is about to enter a hyperinflation period. This, he explained, will cause Bitcoin to hit $1 Million within 90 days.
Also read:Maller’s Theory Tagged a Straightforward Approach
Experts called it a simple economic theory while discussing Maller’s predictions. They said that since Bitcoin has the characteristics of money with a limited quantity, unlike traditional cash, Bitcoin will likely appreciate against the United States dollar. This will happen even when more units find their way into the system.
Maller revealed that the most important evidence for his claims is when customers prefer to save in digital assets, not the usual U.S. Dollars. Moreover, it was gathered that the $300 billion learned to be pumped into the banking system as part of what they called the “Bank Term Financing Program” is another way of lowering Fed’s last year’s balance sheet.
Meanwhile, it has also been hinted that the United States central bank is working on introducing constant high inflation. This move is responsible for the increase in the inflation rate in June last year, which increased to 9.1% before returning to its original state of 2%. As the latest inflation rate is reported at 6%, it was also announced that the Fed will begin to reduce it starting from the Q1 of 2024, and goes through June 2023.
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