Bob Ras, the co-founder of Sologenic, recently provided his opinion on where Bitcoin’s price is headed, factoring in the recent banking crisis, as well as possible United States Federal Reserve monetary policy changes.
In an interview with Phil Rosen, a reporter for Business Insider, Ras spoke about how Bitcoin has come to be viewed as a more trusted hedging tool as conventional banks continue to struggle, pointing out the crypto’s decentralized nature and lack of counterparty risk
In the interview, Ras indicated that he felt that Bitcoin may become more valuable if the Federal Reserve loosens its monetary policy. A loosening could lead to a substantial liquidity injection. Ras went on to share his opinion that the current price of Bitcoin already accounts for the anticipation of such a scenario, and implied that there may be a return to lower rates at some point in the near future.
The Sologenic co-founder also forecast that Bitcoin could climb to $40K by year’s end, backing that prediction with the cryptocurrency’s already robust performance thus far in 2023:
“I wouldn’t be surprised if $40,000 could be reached by the end of this year.“
Bitcoin’s performance up until this point in the year, he suggested, was driven by the cryptocurrency being severely undersold throughout the collapse of FTX, as well as a trend of increased accumulation while the digital asset was being sold at lower prices. This setup, Ras felt, led to a supply shock within the cryptocurrency market, causing Bitcoin’s value to be more sensitive to demand increases.
Despite the positive price prediction, Ras did not fail to mention the possible risks associated with the world’s most valuable digital asset. The most significant threat to Bitcoin’s price, he felt, was a credit crisis that leads to a sudden market contraction. In this type of scenario, assets of all types would be likely to correlate, causing extreme levels of market volatility.
Although Ras didn’t definitively state that this type of scenario would take place, he did give mention to the possibility of such a setup and the turbulence that it would cause within the market should it occur.