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Jeff Kendrick, head of forex research at banking institution Standard Chartered, recently said that if the U.S. were to default on its debt, the price of bitcoin would likely jump by $20,000. According to Kendrick, if the US defaults, Bitcoin will likely surge, while other cryptocurrencies such as Ethereum will likely fall.
US debt default is a ‘low-probability’ and ‘high-impact event’
Amid growing fears that the U.S. government will default on its debts, Jeff Kendrick, head of foreign exchange research at Standard Chartered, said such an event would trigger the price of Bitcoin.Bitcoin) soars by more than $20,000. Although Kendrick characterizes defaults as “low-probability, high-impact events,” he nonetheless cites the reputation of the best cryptocurrencies for performing well when markets fall and their safe haven. He suggested that the status means that its price is up nearly 70%.Possible.
But Forex analysts said they don’t think the surge will start immediately after the default. Instead, it could be preceded by a $5,000 price drop before a $25,000 surge. Only Bitcoin’s price is likely to follow that trajectory, Kendrick said, while other cryptocurrencies such as Ethereum are likely to fall when the US defaults.
“So, in practice, the optimal trade would probably be long Bitcoin and short Ethereum. Such a mix would probably represent this well,” says Kendrick. Said.
Bitcoin Exceeding $100,000 by the end of 2024
As Bitcoin.com News recently reported, Treasury Secretary Janet Yellen has warned that if Congress fails to raise or suspend the debt ceiling, the U.S. government will likely not meet its obligations on June 1. bottom. According to Yellen, such an event would “would result in an economic and financial catastrophe.”
In addition to predicting a price increase of $20,000, Kendrick recently Bitcoin It could exceed $100,000 by the end of 2024. In a recently issued note, analysts reportedly cited U.S. bank turmoil, the halving event and Federal Reserve rate hikes as some of the factors likely to help push prices higher. . BitcoinHowever, the note is said to rule out the much-talked-about US debt default.
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