The global economy and Bitcoin (BTC) have both been incurring increasing volatility as of late, with the former’s volatility primarily being centered around recently released data from both the United States and Europe, which signals that the economy may currently be at a precarious point that requires a significant amount of monetary stimulus to be supported.<\/p>\n
Despite this, one analyst believes that all this data may actually provide \u201crocket fuel\u201d for Bitcoin as the \u201cGold 2.0\u201d narrative continues to strengthen due to its uncorrelated nature.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down over 2% at its current price<\/a> of $9,790 and is down significantly from its daily highs of over $10,000.<\/p>\n Bitcoin\u2019s bearish price action as of late was first sparked this past weekend, when it sharply surged to $11,000 before incurring a sudden influx of selling pressure that sent its price reeling down.<\/p>\n This week, the global economy has also been introduced to some bearish pressure that came about after a more-hawkish than anticipated ECB report<\/a> that signals a rate cut is likely on its way. Although the markets have responded positively to this, it does signal that the economy require stimulus to maintain its steam and is not self-sufficient.<\/p>\n Furthermore, US GDP growth has also been facing some pressure, dropping<\/a> from 3.1% last quarter to 2.1% this quarter.<\/p>\n Pomp, the co-founder and partner at Morgan Creek Digital, spoke about this in a recent tweet, saying that this slowdown is rocket fuel for Bitcoin.<\/p>\n \u201cHERE WE GO: US GDP last quarter: 3.1%. US GDP this quarter: 2.1%. Economy \u00a0s l o w i n g\u00a0down only means one thing \u2014 cutting rates and printing money! They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume,\u201d he explained.<\/p><\/blockquote>\n HERE WE GO.<\/p>\n US GDP last quarter: 3.1% Economy s l o w i n g down only means one thing \u2014 cutting rates and printing money!<\/p>\n They don't realize that they're giving Bitcoin the rocket fuel it was built to consume.<\/p>\n Long Bitcoin, Short the Bankers!<\/p>\n — Pomp \ud83c\udf2a (@APompliano) July 26, 2019<\/a><\/p><\/blockquote>\n\n
US GDP this quarter: 2.1%<\/p>\n