According to Harry Dent, this asset will experience a dramatic decline as Bitcoin enters its second wave of ‘the biggest crash of our lives’. As Kriptokoin.com, we have compiled information about the asset that the famous name thinks will collapse for you.
Analyst expects drop
Dent expects gold to drop to as low as $900 an ounce by mid-2024. “Gold is not a safe haven,” the analyst said, not for Bitcoin. Then ‘I predict gold will drop to $900 to $1,000. That will be much less than other commodities… There’s still a 40 to 45 percent drop from here.’ he added.
Dent’s history includes accurately predicting the Japanese asset bubble, the DotCom bubble, and the 2016 election of Donald Trump as President. Dent said an ‘everything bubble’ has been produced by the Federal Reserve’s loose monetary policy, which has caused bursts in most asset classes, particularly equities.
When the NASDAQ hits 10,088 2022 lows, he predicted a ‘major crash’ in an already bearish market. “I feel like the lowest at this point for equities is probably going to be … like July or 2024,” Dent said. Then he said, ‘So, we’re still in the early stages. We need to break the last low of 10.088 to know that this slump continues and will go much deeper.’ he added.
He added that once this critical level is reached, there will be ‘next wave’ downwards. Dent expects the NASDAQ to drop 92 percent and the S&P 500 86 percent from their all-time high. Dent said that gold will drop to $900 an ounce along with other assets, but will eventually reach $4,000 after the markets recover and the next economic boom occurs.
Fed says it can’t fix it
Dent predicted that the Fed, which increased interest rates by 425 basis points in 2022 to cool rising prices, would not be able to prevent the market crash.
‘If [Jerome Powell] turned and rolled over that, it would have looked really silly for him to tighten up a bit and then go back to loosening up,’ he said. Then ‘This proves how weak the economy is and makes the Fed look reckless.’ he added.
He added that if the Fed turns to loose monetary policy, it will lose credibility. It was also said that ‘when the Fed realizes that it has over tightened after over-stimulus and wants to re-promote, they won’t have much credibility.’ Along with it, ‘The government has [printed money] long enough is not working right now and it’s backfiring on central banks.’ it was added.
While he argued that it would be ‘wise’ for the Fed to suspend tightening, he claimed it would not prevent the inevitable collapse in equities. “This economy continues only with increasing incentives,” he said. Then, ‘You don’t need to compress this bubble. All you have to do is stop feeding this bubble. So even if they stop, we won’t go back to normal. The stock market will still be on the weak side.’ he added.
Bitcoin is not the next economic superpower
Dent, whose economic analysis revolves around demographic trends, predicts that India will emerge as the world’s next economic superpower due to its growing population and large proportion of youth.
The analyst predicted that ‘India and Southeast Asia will do much better than China [in the long run]’. Also, ‘Someday, around the 2050s or 2060s, India will be the world’s largest economy and the US will likely be slightly larger than China.’ he added.
Dent claimed that China’s aging and declining population, along with its over-investment in buildings, will weaken its economy for the next century. The forecast for India was more positive. ‘India is the next super-large country that can urbanize at 1 percent a year,’ said the analyst.
Despite forecasting a low gold price by 2024, Dent said India’s growth bodes well for gold’s long-term price forecast. He especially mentioned the gold consumption in the country, which is the second largest gold importer in the world.
32943
