The analyst predicted that Bitcoin would be worth USD 100,000 if people lost faith in the US dollar. He believes that the demand for the American fiat currency might drop if the Fed failed to lower inflation.
Many bulls still believe Bitcoin (BTC) will reach USD 100,000 in the long term despite its recent drop to around USD 19,000. That new level represented a fall of 70.5% from its all-time high of nearly USD 68,000 in November 2021.
Cryptocurrency analyst Nicholas Merten recently said that the price of Bitcoin might eventually reach USD 100,000. He compares that rise to what happened to gold in the 1970s but considers that it might continue to drop by 85%.
Merten commented that another asset might trade similarly to gold, saying it might be Bitcoin. He highlighted that it has undergone a steady 75% decline and will probably decrease by around 80% to 85% as a minimum.
He explained that the outlook would be optimistic for the pioneering cryptocurrency when it stops falling. He predicted it would reach six figures between USD 100,000 and 200,000, as many expected last year.
He visualizes this future for Bitcoin because people have started to lose faith in the US dollar as the world reserve currency. That scenario leads him to estimate that the demand for the cryptocurrency will grow, causing its price to rise.
Bitcoin Will Reach USD 100,000 If People Lose Faith in the US Dollar
According to Merten, people will prefer Bitcoin to the US dollar if the US Federal Reserve (Fed) cannot lower inflation. The cryptocurrency analyst thinks they will lose faith in most of the world’s fiat currencies.
The expert concludes that much liquidity will want to go somewhere if the US dollar is unstable. That happened to gold in the 1970s, which made its price rise, as Bitcoin might.
The US dollar is at its strongest in 20 years as demand for risky assets like Bitcoin continues to decrease. However, Marten thinks the US dollar might fall along with other fiat currencies if the Fed fails to solve inflation. The specialist knows that this scenario would provide suitable conditions for the price of Bitcoin and its demand.
Jerome Powell, the Fed chairman, recently said it would take time to solve US inflation. He added that the United States would undergo the highest inflation of its last 40 years in 2022.
Bitcoin is trading at around USD 20,014 and has accumulated a 5.4% loss over the last week. While its daily trading volume is above USD 18.61 billion, its market capitalization is about USF 382.96 billion, according to CoinGecko.
By Alexander Salazar
