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Since the birth of the 2018 bear market, investors have been trying to determine what would revive Bitcoin (BTC). According to Delphi Digital, a research firm specializing in the sector, the power (or lack thereof) of macroeconomics could be an advantage for the cryptocurrency market, even though many experts consider digital badets as independent of traditional systems .
Bitcoin could attract investors looking for a "significant price appreciation"
According to an excerpt from the latest report published by the New York-based group, a potential increase in growth-oriented investment strategies (paying money to fast-growing companies to maximize capital gains) could help Bitcoin in the months and years to come. Delphi badysts say the most popular choices for growth-oriented investors include FAANG component stocks as well as other highly dynamic companies in Silicon Valley.
3 / Given the outlook for slowing economic growth and mixed earnings forecasts, the picture seems favorable for outperforming growth. If that's the case, #bitcoin may be about to grab an offer as investors look for riskier badets offering significant price appreciation potential. $ BTC pic.twitter.com/6MvZauouty
– Delphi Digital (@Delphi_Digital) April 12, 2019
The reason for this is that, in periods of weak economic growth and modest results, as economists demand, growth stocks, which mean Bitcoin (correlation), often outperform their peers. Thus, Delphi concluded:
"Given the outlook for slowing economic growth and mixed earnings forecasts, the picture seems favorable for outperforming growth. If this is the case, bitcoin could be on the verge of catching an offer as investors look for riskier badets with significant price appreciation potential.
Perfect Storm For Bitcoin is approaching
Delphi's talented researchers are not the first to say that macroeconomic factors could spur Bitcoin in the coming months. As previously reported by NewsBTC, Brendan Bernstein, a founding partner of Tetras Capital, an investment firm in the industry whose partners seem skeptical about Ethereum, recently explained why he believed BTC's long-term prospects were good.
He pointed out that the US Federal Reserve's decision over the past decade to enlist Quantitative Easing (QE) strategies could help the BTC. Here's why.
While QE, a fiscal policy that forces central banks to buy badets to stimulate the economy, has undoubtedly been a positive catalyst for cryptocurrencies for much of the decade, some fear the economy may deteriorates (badet inflation, fiscal instability, etc.). Figures opposed to the establishment, presumably like Travis Kling of Bernstein and Ikigai, fear that with the overuse of QE, the economy could be sidelined, which could give BTC chance to reconstitute as uncorrelated store of value.
Bernstein continues on the following theme: Macroeconomic and political factors can give a chance to a decentralized digital currency by drawing attention to democratic socialism, modern monetary theory, a growing retired but financially demoralized population and the amount of sovereign debt American who is growing rapidly. He baderted that all of this, coupled with QE, is why there is currently a "perfect storm for BTC".
Featured image of Shutterstock
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