In a recent interview with David Lin, Lawrence Lepard, the managing partner at Equity Management Associates, forecasted a price increase for Bitcoin to $150K and $5K for gold by 2025.

The expert argues that the looming Federal Reserve policy shift and U.S. fiscal challenges are primary drivers behind the anticipated surge.  Lepard explained that Bitcoin and gold are reacting pre-emptively to the anticipated monetary policy pivot by the Federal Reserve despite no official changes. He highlighted the contradiction in market expectations, which foresee a possible Federal Reserve rate cut by 2025, even as persistent inflation might delay such actions. Lepard cited continuous high government spending and increasing public debt as underlying factors exacerbating the economic situation. 

The investment strategist also drew attention to the challenges the U.S. faces in managing long-term debt sales, attributing difficulties to rising duration risk awareness. He believes this signals a growing recognition that inflation might remain above the Federal Reserve’s 2% target, influenced by rising wages, food prices, and insurance costs.

Reflecting on the economic conditions similar to the 1970s, marked by geopolitical tensions and high oil prices, Lepard sees gold and Bitcoin as indicators of looming inflation. He noted that while the upper-middle class appears to be faring well, broader employment issues persist, with many low-paying or part-time jobs not providing adequate financial security.

Furthermore, Lepard emphasized the increasing interest in gold and Bitcoin among Asian investors, drawn by their historical experiences with currency crises and the current lack of attractive investment alternatives. He discussed Bitcoin’s evolving role, anticipating its decoupling from traditional financial assets like the NASDAQ and becoming a distinct measure of liquidity. However, analyst Jason Pizzino warns of a post-halving dip to $59K before a move-up along with George, an analyst from CryptosRUs, who also warns of incoming dips for BTC.

Bitcoin Price Review: How Is Bitcoin Reacting To The Halving?

Analzsing Bitcoin charts, we see that the Bitcoin price fluctuates within the Bollinger Bands, which suggests that it is currently in a period of relatively average volatility. The price has touched the upper band and seems to be retracing toward the moving average, which could indicate a potential sell signal to some traders.

4-hour BTC/USD Chart | Source: TradingView

Looking at indicators, we notice that the Woodies CCI is around the -70 mark, which is close to the oversold threshold, suggesting a potential upcoming reversal or bounce in price if it dips lower. The ADX (Average Directional Index) is above 25, indicating a particular strength in the current trend. Bitcoin was priced at $63,682, representing a 2.46% decrease over the last day as per CoinMarketCap stats.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.