BTC<\/a>) rising over the coming months on the back of a favorable macroeconomic backdrop.<\/p>\nIn a new interview with crypto journalist Natalie Brunell, Gromen highlights the US government\u2019s nearly $35 trillion debt.<\/p>\n
With the national debt sitting at record-high levels, the macro expert says there\u2019s nothing the Fed can do to stop the resurgence of inflation, which will ultimately drive investors to seek shelter in store-of-value assets like Bitcoin to preserve their wealth.<\/p>\n
\u201cI\u2019m super bullish Bitcoin for the next six to 12 months at least, tactically and strategically because whether the Fed hikes or whether the Fed cuts, doesn\u2019t matter. In my opinion, inflation and fiscal deficits are going higher.\u00a0<\/em><\/p>\nThe only way that it doesn\u2019t happen is if the dollar is weakened. Then, fiscal deficits will actually trend lower.\u00a0\u00a0<\/em><\/p>\nSo my choices are: higher rates [and] more inflation, lower rates [and] more inflation or deficits down with a weaker dollar [means] more inflation [and] more debasement.<\/em><\/p>\nI think it sets up really, really well for Bitcoin and critically the fundamentals are there, but when you look at positioning, there\u2019s still a lot of skepticism on Bitcoin, and there\u2019s still $6 trillion-plus sitting in money market funds. There\u2019s still a lot of concern, there\u2019s still a lot of belief that the Fed\u2019s, \u2018Oh inflation is picking back up, the Fed is going to come in and smack inflation back down.\u2019\u00a0<\/em><\/p>\nNo, no, no, no, no. They can try and you could get a pullback\u2026 If we go from the Fed going to cut twice this year to the Fed\u2019s going to hike this year, you probably going to get a sell-off in Bitcoin and industrial stocks, stocks, maybe even gold\u2026 for like a week or two. <\/em><\/p>\nAnd then there\u2019s going to be this recognition of, \u2018Oh god the Treasury market is dysfunctioning, we can\u2019t have that.\u2019 So that\u2019s going to start the discussion and ultimately 6% rates are going to be more inflationary on a lag than 5.25% because there\u2019s $35 trillion in debt and it\u2019s rising as a percent of GDP now and Fed rate hikes will make it rise faster as a percent of GDP.\u00a0<\/em><\/p>\nSo I\u2019m super bullish Bitcoin because I\u2019ve got fundamentals: they hike, it\u2019s inflation; they don\u2019t hike, it\u2019s inflationary; they don\u2019t hike, it\u2019s inflationary; they cut, it\u2019s inflationary. <\/em><\/p>\nIf they want to keep the wheels on the cart, they\u2019ve got to weaken the dollar or continue to weaken the dollar. All of which is good for Bitcoin.\u201d
<\/em><\/p>\nAt time of writing, Bitcoin is trading for $64,637.<\/p>\n