says<\/a> that periods of stagflation have traditionally \u201cbeen very, very good for hard assets.\u201d<\/p>\nA period of stagflation is characterized by high or rising inflation rates, slowing economic growth, and high unemployment levels.<\/p>\n
\u201cI would be surprised if Bitcoin didn\u2019t go up a lot if we get into this sort of a stagflationary trap where we\u2019re following that 1970s pattern that was kind of like a Camel\u2019s hump (because it went up once, came down and came back up again).\u201d<\/i><\/p>\n
On how high Bitcoin could appreciate, Peter St Onge says,<\/p>\n
\u201cGold went up six-fold in the 1970s \u2013 actually during the entire decade I think it went more than that, silver was up seven-fold. And so at that point, it\u2019s kind of an interesting parlor game to ask \u2013 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><\/p>\n
I\u2019m very excited to see what exactly happens there but I would be surprised unless Bitcoin went up a lot as well.\u201d<\/i><\/p>\n
According to the Heritage Foundation economist, the Federal Reserve\u2019s actions will be the telltale signs of the economic outlook.<\/p>\n
\u201cIf we get to a point where inflation is still going yet the Fed starts cutting, that is where that death cross comes in. That\u2019s where you would get really concerned because you would say, \u2018Wait, so the inflation job is not done but you guys just gave up on the tools that they use to fight inflation?\u2019. So that basically tells you, \u2018Okay, so you\u2019re afraid of something bigger?\u2019 <\/i><\/p>\n
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.\u201d<\/i><\/p>\n