In a recent interview, Mark Moss, a veteran investor and Bitcoin advocate, offered an optimistic outlook on Bitcoin’s BTC/USD future, highlighting several key factors driving its potential growth.
What Happened: In an interview with Bitcoin influencer Natalie Brunell, Moss emphasized the importance of "zooming out" to understand Bitcoin’s trajectory.
Despite short-term volatility, Bitcoin is up 130% year-over-year and 242% over two years, compared to a 31.8% gain by the S&P 500 Index over a year and 54.8% increase in two years, according to Moss
He attributes this growth largely to global liquidity cycles, explaining that Bitcoin has an 8.95 times sensitivity to liquidity increases compared to traditional assets. This implies for every 10% increase in liquidity gold would go up by about 14% and Bitcoin would go up by 90%.
Looking ahead to the 2024 U.S. presidential election, Moss sees significant implications for Bitcoin’s adoption.
He suggests that a Trump victory, which he estimates has a 65% chance, could lead to Bitcoin being added to strategic reserves, potentially pushing its price to $300,000-$400,000. A Harris victory, he believes, would result in a more conservative projection of $100,000-$150,000.
Contrary to the predictions of a market crash, Moss anticipates an "inflationary crash" where asset prices, including Bitcoin, continue to rise rapidly while standards of living decline due to wages not keeping pace. He expects this scenario to be more detrimental than a deflationary crash, as it eliminates opportunities for market re-entry.
Also Read: 5 Reasons Why Bitcoin Rallied 10% In 7 Days To $63K: Bernstein
Regarding Bitcoin’s future role, Moss believes it will integrate more seamlessly into mainstream finance rather than remaining a niche interest. He doesn’t foresee significant regulatory hurdles in the U.S., citing Bitcoin’s entrenchment in political and financial circles.
Moss concluded by advising a long-term perspective on Bitcoin investment, emphasizing the strategy of earning in fiat currency, saving in Bitcoin, and holding assets indefinitely. This approach, he argues, aligns with the true "game of money" and can lead to greater financial success and peace of mind for investors.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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