Despite the bearish price action this week, the CEO of cryptocurrency management platform Abra shared his bullish prediction. Macroeconomic forces will soon lead to bullish price action for Bitcoin and altcoins, according to the CEO. Here are the details…
Abra CEO comments on Bitcoin and altcoins: Rise is coming soon
In a new interview with Thinking Crypto, Bill Barhydt drew attention to the PMI data. He said the data shows the US is in or about to enter a recession. PMI is an economic indicator that aims to show the health of the manufacturing and service sectors. Barhydt says he personally believes the economy has been in recession for a quarter and a half years. Abra CEO uses the following expressions:
I think this recession will probably continue until the end of the year… Basically you will see a ‘Great Recession’ from the Fed. What is the ‘Big Pause’? You’ll see it said, ‘It’s great to see that these dramatic rate hikes we’ve made are having the intended effect of slowing price inflation. It’s actually ‘We’re in a recession right now, and the barometers most of us use to understand it are incomprehensible. Therefore, I don’t need to say this, but we are actually in a recession. So we’re going to stop these dramatic rate hikes and wait and see what happens.
For risky assets, the game will continue from the first quarter of 2023
Abra CEO predicts that the “Great Pause” will happen in October. At this point and entering the first quarter of 2023, the “game will continue” for risky assets like Bitcoin and crypto. According to the CEO, the Fed’s pause and the expectations in the bond market are increasing the money supply dramatically. That’s why the game for stocks and crypto really has a chance to continue, according to the CEO.
The CEO also said in recent months that he sees Bitcoin as a store of value. “The naming of Bitcoin as ‘digital gold’ is the best analogy I’ve ever seen,” said Barhydt, following the Bitcoin store of value comment. Also, as we reported on Kriptokoin.com, the CEO has argued that Bitcoin is a great insurance against traditional markets. But he hasn’t made any further comment on whether this argument is still sustainable, given that BTC has recently been closely correlated with other markets.
Bitcoin, in theory, does not have any direct ties to mainstream financial markets as it is infinitely far from government control. However, the asset has shown an ostensibly correlated move with traditional markets at points, while at other times it has been on its own price path. Time will tell how the markets will move in the future.
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