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Bitcoin (BTC) experienced one of its disturbing drops, quickly falling to the $65,862 levels. Moreover, short-term closures below $68,000 are negative. Additionally, each $70,000 test resulting like this for months seriously negatively affects investors‘ motivation and belief in the rise. So, what does Luke Gromen say?
Bitcoin and the Future of the US
Trump made such statements that we will likely see a big green candle in the BTC price on the day he declares his election victory. Experienced macro investor Luke Gromen addressed the current situation, stating that what the US needs is Bitcoin. The famous investor mentioned that the economy is shrinking to finance the dollar and said;
“The United States is the Saudi Arabia of the dollar. In the short term, this is a good thing. In the long term, it means the rest of the US economy is evolving to become financialized. We are deindustrializing, and this leads to high levels of wealth inequality, high levels of political instability…
This also means a national security risk.”
The Solution is Bitcoin
This is exactly what he thinks. According to Gromen, if BTC is adopted as a reserve asset as Trump announced, the US’s job could become easier. He argues that Gold or Bitcoin will eliminate what he calls the “resource curse.”
“You can fix this by getting rid of Treasury bonds as the primary reserve asset. Instead of Treasury bonds, you cover deficits with a neutral reserve asset that fluctuates in all currencies. Either gold or Bitcoin, that’s it.
Ultimately, what you will do, given the size of the US trade deficit and current account deficit, is that there is a lot of demand that needs to be met. To meet these, we will need a lot of gold or Bitcoin at current prices. This means that the price of gold or Bitcoin [as a neutral reserve asset] needs to rise significantly in dollar terms.”
If this approach finds support in politics, it is possible for Bitcoin to experience at least a period of parabolic rises with the narrative that it can solve something. On the other hand, despite many rumors, the Democratic candidate Harris has not yet adopted a stance that will attract the attention of crypto investors.
