According to a well-known analyst, the cryptocurrency market, including Bitcoin (BTC), may experience an upswing due to the restart of monetary expansion.
According to a recent video update by the anonymous host of InvestAnswers, the level of global liquidity has been a reliable indicator of the crypto market’s behavior throughout history.
The analyst says that with liquidity slightly falling over the past year, the trend is likely to reverse and boost Bitcoin in the process.
“Global liquidity has fallen down because the US is tampering their money supply. It’s down 4% or 6% year to date so far, and that’s had a big impact on this gold line cutting through the Bitcoin line. Normally, when liquidity goes up, Bitcoin goes up, with a little bit of a time lag. Sometimes it’s exactly at the same time, so crazy, crazy times here.”
He continued and said the following:
“You can see here liquidity has dropped off, but with all the stuff that’s going on with debt ceilings being risen, and other economies around the world like Germany realizing they’re in a recession, money printing will begin again. [I’m] pretty certain of that. And that will drive the prices up, too.”
US to increase taxes
The former Treasury Secretary Larry Summers, said the fact that the US government is planning to implement “significant” tax hikes on its citizens in an attempt to address its $1.4 trillion deficit.
According to Bloomberg’s coverage of a recent speech, Summers predicts that uncontrollable inflation and debt will lead to further tax increases and a shift towards higher interest rates by the US government.
According to Summers, the debt of the United States is incredibly large, and reducing spending alone will not be sufficient to solve the problem. Consequently, implementing higher taxes will be necessary.
“We have a challenge before us that is of a magnitude that is unprecedented in our own history…
The US will, over time in ways that are largely not recognized by the political process, be likely to require substantial increases in revenue.”
