Top Trader Sees Bitcoin Skyrocketing 570 in Next Bull Market Amid Soaring US Debt Levels

A trader who accurately called the end of Bitcoin’s (BTC) 2021 bull market thinks that the crypto king will once again meteorically rise due to the inevitable return of money printing.

Pseudonymous analyst Pentoshi, a prominent figure with 702,300 followers on social media platform X, is making a bold prediction. He asserts that it's just a matter of time before the US government resorts to its money-printing mechanisms once again. According to Pentoshi, this move will trigger a parabolic surge in Bitcoin's value. The catalyst for this surge, he believes, will be the US government's decision to devalue the dollar to manage its staggering debt, which currently stands at a staggering $33.523 trillion.

Pentoshi explains, "When the printers come back to inflate away debt, and they will and always have. Just remember, BTC is fundamentally the hardest asset in the world with both a programmatic monetary policy and fixed supply. There’s always another cycle."

In essence, Pentoshi suggests that Bitcoin's scarcity and unalterable supply make it a safe haven for investors seeking refuge from currency devaluation. As the US government potentially embarks on this path, Bitcoin could emerge as a store of value in the face of economic uncertainty, setting the stage for another remarkable cycle of growth.

Examining the trader's chart, he envisions Bitcoin embarking on a remarkable journey to reach a new all-time high of $180,000, a move that would represent a substantial increase of approximately 570% from its current price levels.

Despite his bullish outlook on Bitcoin, Pentoshi acknowledges the uncertainty surrounding the Federal Reserve's monetary policies. He conveys his uncertainty by stating, "Really have no way of knowing when tightening will end, and it can extend for years. Or we can just end up in years of stagflation."

In addition to monitoring the Fed's actions, the crypto strategist is closely observing the relationship between Bitcoin and the M2 money supply, a key global liquidity indicator. Pentoshi and other crypto traders believe that Bitcoin tends to thrive during bull markets when M2 or global liquidity is on the rise.

The analyst shares a chart illustrating that the Bitcoin vs. M2 ratio appears to be gearing up for a significant breakout, indicating the potential for Bitcoin to experience substantial growth in conjunction with favorable global liquidity conditions. This observation aligns with his bullish prediction of Bitcoin's ascent to $180,000, driven by a surge in demand and confidence in the cryptocurrency.

At time of writing, Bitcoin is trading for $27,855.

Oct 16, 2023