Dan Tapiero, a macro investor, suggests that Bitcoin’s resurgence depends on a shift in monetary policy by the Federal Reserve. He argues that fiscal tightening needs to be balanced with monetary easing to sustain liquidity. Tapiero believes that Bitcoin could soar to $180,000-200,000 if these conditions are met, though current trading sits at around $103,159.
In a recent interview with the Milk Road YouTube channel, macro investor Dan Tapiero discussed the potential spark that could lead to a resurgence in Bitcoin (BTC) and the wider crypto market. He argues that for digital assets to truly shine, we need to see a realignment in monetary policies.
Tapiero highlighted that current actions by Fed Chair Jerome Powell are, in essence, stalling progress. However, he believes that a necessary shift in policy could boost Bitcoin and other cryptocurrencies significantly. He pointed out that fiscal tightening should ideally be counterbalanced by monetary easing to ensure liquidity and demand remain robust.
He stated, “Fiscal policy has been contributing to demand, and now it’s not…the dollar is already sensing that – and that’s why it’s weakened.” Moreover, Tapiero expressed the view that the government, ideally, should have coordinated with the Fed to ease monetary policies ahead of fiscal tightening.
As he puts it, Powell is currently hesitant, but Tapiero expects forthcoming economic data will force him to reconsider, which would invigorate the digital asset sector. Bitcoin, along with Ethereum and Solana, could see significant positive movement should liquidity return from traditional finance.
If conditions align as Tapiero expects, he believes Bitcoin could potentially reach around $200,000. The investor noted that while strong fundamentals are present for many crypto projects, the key might still rest on some liquidity influx from traditional systems.
“Despite the robust fundamentals behind Bitcoin and emerging projects in DeFi or even NFTs, a little liquidity from the old financial world could push Bitcoin close to $180,000,” Tapiero stated.
As of now, Bitcoin is trading at approximately $103,159, showing a slight uptick today. Investors are advised to keep a close eye on market developments, as well as the Fed’s monetary policies, which could prove pivotal in the coming months. Likewise, it’s worth noting that opinions shared do not constitute investment advice, and one should perform due diligence.
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