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According to Jack Mallers, CEO of Strike, Bitcoin could hit $1 million after a tsunami of newly printed liquidity sent the price of all assets soaring.
The executive, whose payment app lets people send fiat currency around the world on Bitcoin rails, said in an interview Friday that money printing will be necessary to bail out the U.S. bond market, which , according to him, is “in trouble for the first time in the modern era”. financial history.
A recipe for printing money
According to Mallers, the US government and the Federal Reserve have two options: either let the banking system fail or print their output disorder.
“I think historically governments and empires have benefited from runaway inflation,” he said. “I expect inflation to accelerate and the currency to devalue.”
The CEO claimed the entire banking system was “insolvent,” including JPMorgan and Bank of America.
In March 2023, institutions like Silicon Valley Bank collapsed after experiencing a rush of withdrawals. The collapse was sparked by revelations that they had made a massive loss on their long-term underwater bonds, which fell in value after the Federal Reserve began raising interest rates the previous year .
“Central banks and the government will try to save this market,” Mallers argued. The liquidity needed for the rescue could be equivalent to “two or three Covids”, he said, which would result in asset prices rising.
How Bitcoin Reaches $1 Million Per Coin
“I think $250,000 to $1,000,000 is my imagination, in that range, of how big (Bitcoin) can get,” he added.
Mallers' predictions echo those of BitMEX co-founder Arthur Hayes, who regularly writes about the precarious tension between inflation and government debt. At Token2049 this month, the essayist claimed that Bitcoin would surpass $100,000 well this cycle as real interest rates continue to trend negatively to relative U.S. GDP.
Other industry leaders with price predictions in excess of $1 million include Samson Mow, CEO of Jan3, and Cathie Wood, CEO of Ark Invest.
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