A macro strategist has suggested that the current Federal Reserve's tight monetary policy is suppressing the breakthrough phase of Bitcoin and digital assets, and predicted that Bitcoin could reach $180,000 when monetary easing begins.
According to Coin2 on the 11th (local time), macro strategist Dan Tapiero appeared on the Milk Road podcast and argued that the Federal Reserve's current tight monetary policy is suppressing the breakthrough stage of Bitcoin and digital assets. He said that while decentralized finance continues to grow and cryptocurrency use cases are increasing, this ecosystem still partially depends on liquidity from traditional finance.
Tapiero pointed out the growing discrepancy. The fiscal policy is rapidly contracting, and the Fed has not yet provided monetary easing to offset that retreat. He said that in a situation where consumer demand is weakening and the dollar is already showing weakness, the current policy setting may be too restrictive to sustain growth.
Instead of leaving the entire weight of government spending cuts for the economy to absorb, Tapiero believes the Fed should move in the opposite direction to balance its impact. He implied that coordination between fiscal and monetary authorities would be key in a "reasonable environment," but saw Jerome Powell's hesitation as delaying the result.
Despite the strong fundamentals of the cryptocurrency space, from increasing decentralized finance activity to renewed interest in Non-Fungible Tokens, Tapiero emphasized that even the thriving blockchain ecosystem cannot be completely separated from broader liquidity flows. He believes the effect will be dramatic when capital from traditional markets begins to re-enter this space.
Tapiero sees that if monetary easing arrives as expected, Bitcoin could resume its rise and reach his long-standing target of $180,000. He argues that a combination of favorable macro changes and accelerating cryptocurrency innovation could trigger the foundation for the next rally that goes far beyond Bitcoin.
The core of his message is a broader proposition: the boundaries between traditional finance and digital assets are not as clear as many think. As long as monetary policy governs global capital flows, the biggest rally in cryptocurrencies can still be rooted in decisions made by central banks.
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