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Clem Chambers, CEO of Online Blockchain Plc, said in a statement to Stansberry Research on Monday that the recent decline in cryptocurrencies, forex, equities, and commodities was primarily due to a strong dollar. He claimed that because the value of non-dollar assets would be destroyed by the uncontrolled run of the dollar, investors were deterred from making investments in those types of assets.
Bitcoin may soon reach a bottom after falling for almost a year as the Fed concentrates on halting the dollar’s rise.
Clem speculated that a weaker dollar might potentially skyrocket the price of Bitcoin, saying, “I think the Fed and those men up there have determined that the currency is strong enough, and they don’t wait for it to get any stronger.”
“The dollar’s wild run has abruptly come to an end, and that’s not by chance,” He further stated that this was great news for cryptocurrencies and other assets. In other words, he anticipated that the dollar would likely weaken rather than increase from where it is now.
He did, however, issue a warning that the Fed’s aggressive monetary policies would make it take a little longer for the Dollar-effect to fade.
Although a weakened dollar was a “huge hairy deal” for crypto assets, he claimed that investors should be prepared for a rocky ride that would probably conclude in “a year to 14 months.”
The US dollar index (DXY) has been on a wild bull run since bottoming out in May when risk assets fell. Given that Bitcoin is still seen as an asset, the DXY has historically had a negative correlation to it. In a recent interview with Bloomberg, FTX CEO Sam Bank-man Fried was also cited as claiming that the Fed’s monetary policy was to blame for the crypto market downturn and that the strong dollar was the main factor.
Nevertheless, Clem is optimistic that bitcoin will find a bottom in the $20,000 range when the Dollar declines, despite his continued bearishness on the cryptocurrency in the near term. He does, however, issue a warning that if the US dollar remains strong, the price may experience another leg down. He claims that if Bitcoin crosses the $17,000 mark, it might fall as low as $10,000.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
