BTC and Gold To Go Up ‘A Lot’ if Fed Pivot Triggers Severe Recession and Stagflation: Economist Peter St Onge
Heritage Foundation think tank economist Peter St Onge says that economic stagnation and high inflation could positively impact Bitcoin (BTC) and gold.
In a new interview on Kitco News, the economist says that periods of stagflation have traditionally “been very, very good for hard assets.”
A period of stagflation is characterized by high or rising inflation rates, slowing economic growth, and high unemployment levels.
“I would be surprised if Bitcoin didn’t go up a lot if we get into this sort of a stagflationary trap where we’re following that 1970s pattern that was kind of like a Camel’s hump (because it went up once, came down and came back up again).”
On how high Bitcoin could appreciate, Peter St Onge says,
“Gold went up six-fold in the 1970s – actually during the entire decade I think it went more than that, silver was up seven-fold. And so at that point, it’s kind of an interesting parlor game to ask – well, Bitcoin usually moves a lot more than gold and so if we get this sort of second wind on the stagflation and gold soars, what happens to Bitcoin?
I’m very excited to see what exactly happens there but I would be surprised unless Bitcoin went up a lot as well.”
According to the Heritage Foundation economist, the Federal Reserve’s actions will be the telltale signs of the economic outlook.
“If we get to a point where inflation is still going yet the Fed starts cutting, that is where that death cross comes in. That’s where you would get really concerned because you would say, ‘Wait, so the inflation job is not done but you guys just gave up on the tools that they use to fight inflation?’. So that basically tells you, ‘Okay, so you’re afraid of something bigger?’
And specifically, what they would be afraid of is some sort of massive, maybe not a depression but a severe recession. Something like the 2008 crisis.”
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The post BTC and Gold To Go Up ‘A Lot’ if Fed Pivot Triggers Severe Recession and Stagflation: Economist Peter St Onge appeared first on The Daily Hodl.
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Author: Mark Emem
