Saxo Bank, the online multi-asset trading and investment specialist, has released its annual set of 'Outrageous Predictions' for the year 2017. The predictions for the next year also mention Bitcoin and its probability of seeing huge gains.
According to Saxo Bank’s 'Outrageous Predictions', the Bitcoin price may triple in value and rise up to the level of $2,100. One of the main reasons for this, according to Saxo Bank’s predictions, will be the increases in the US budget deficit during the first year of the Donald Trump presidency that would lead to the growth of cryptocurrency popularity as an alternative to the US Dollar.
The report states:
“Under President Trump, the US fiscal spending increases the US budget deficit from $600 billion to $1.2-1.8 trillion. This causes US growth and inflation to skyrocket, forcing the Federal Reserve to accelerate the hike and the US dollar reaches new highs. This creates a domino effect in emerging markets, and particularly China, who start looking for alternatives to the fiat money system dominated by the US dollar and its over-reliance on US monetary policy. This leads to an increased popularity of cryptocurrency alternatives, with Bitcoin benefiting the most. As the banking systems and the sovereigns of Russia and China move to accept Bitcoin as a partial alternative to the USD, Bitcoin triples in value, from the current $700 level to $2,100.”
Saxo Bank’s predictions for 2017 also cover a range of scenarios, including a Chinese growth rebound, an Italian bank rally, Brexit giving way to Bremain and the EU's willingness to change in the face of populist backlash.
"After a year in which reality has managed to surpass even seemingly unlikely calls - with the Brexit surprise and the US election outcome - the common theme for our Outrageous Predictions for 2017 is that desperate times call for desperate actions,” comments Steen Jakobsen, Chief Economist at Saxo Bank.