Leading cryptocurrency analyst William Clemente III, co-founder of Reflexivity Research alongside prominent capitalist Anthony Pompliano, recently took to social media platform X to share his insights on Bitcoin’s near-term outlook. Amidst ongoing community buzz about readiness to offload during an impending prolonged downturn, Clemente anticipates that an increase in liquidity is likely to occur.
Clemente, who gained notoriety on Twitter after publishing research on Bitcoin in 2021 and has since amassed nearly 700,000 followers, expressed his dissent with crowds speculating an imminent disposal of Bitcoin as an alternative solution during a protracted recession. “Risking assets,” he remarked.
Pessimistic forecasters’ primary argument revolves around Bitcoin’s December 2021 downturn, which they assert as evidence of an impending decline in the cryptocurrency.
Significantly, the analyst elucidated that Bitcoin serves as a “hedge against monetary debasement,” its decline commencing as liquidity deteriorates and picking up as it starts to rise. According to Clemente, the projected liquidity growth is grounded in his belief that the peak monetary tightening has already occurred, and inflation is currently receding step by step. He underscores that if a downturn is witnessed, it would serve as another indication of the forthcoming liquidity upsurge.
READ also "Cathie Wood expects Bitcoin to surpass one million dollars, and sees hedging against shrinkage"
Clemente added that “Bitcoin does not have cash flows and is not necessarily tied to the economy, historically being linked to liquidity.” In the near future, a potential acute credit crisis is supposed to unfold in a similar fashion to March 2020, at the outset of the pandemic; this is what leads the analyst to believe that Bitcoin is on track for a V-shaped recovery.
In a brief period, Bitcoin plummeted to less than $4,000 and crude oil dipped below zero during the aforementioned event. In this turn of events, capital will flow into the US dollar/treasury bonds in the short term, distinct from the protracted recession currently under discussion by those expecting a Bitcoin decline. “Such an event will be met with a ‘massive liquidity injection anyway. This will be a V-shaped recovery for Bitcoin.”
At the time of writing, the world’s largest cryptocurrency by market value, Bitcoin, is trading at $37,344 on the Binance exchange.
Disclaimer: The information provided is not financial advice. Chinwa.tech does not take any responsibility for investments made based on the information provided in this article. We recommend consulting a qualified specialist or financial advisor before making any investment decisions.