Geoff Kendrick thinks that if the U.S. government defaults on its debt obligations, bitcoin will appreciate 70% to over $40,000.
The analyst called a possible default an unlikely event, which, however, could have serious consequences..
Therefore, investors who consider bitcoin a “safe harbor” will pour their funds into the first cryptocurrency when the market falls.
If the default is announced, the surge in bitcoin will not start immediately, the analyst argues. The jump will be preceded by a bitcoin drop of about $5,000, after which it will rise by $25,000.
While bitcoin will follow a bullish trend, the rate of other cryptocurrencies, including ether, may decline.
“The best trades in such a case would be long positions in bitcoin and short positions in ether. It’s kind of a mix,” Kendrick says.
Analysts at Standard Chartered recently predicted the end of cryptozyma, which means: bitcoin has a chance to grow to $100 000 by the end of 2024.
This forecast is radically different from the one made by analysts at the end of last year. In December, experts at Standard Chartered warned that bitcoin could crash to $5,000 in 2023.