Crypto Talk: Election year economic policies could propel Bitcoin to new heights, predicts Rajagopal Menon of WazirX
«2024 is expected to be a golden year for cryptos. As an election year in many countries, government spending is likely to skyrocket, compelling central banks to reduce interest rates. The US Federal Reserve is most likely to cut interest rates by 25bps in September. The markets will be awash with liquidity and most asset prices including Bitcoin will go to the moon,» says Rajagopal Menon, Vice President, WazirX in an interview with Economictimes.com. Edited excerpts
With Bitcoin's momentum gaining traction post-halving, what factors do you believe are driving this upward trend?
Rajagopal Menon: The upward trend in Bitcoin's price after the recent halving event can be attributed to several factors such as Institutional demand from entities like ETFs and banks such as JPMorgan. A wall of money from Registered Investment Advisors (RIAs) is expected to hit the markets later this year. Additionally, the expected lower interest rates and increased liquidity due to increased government spending have also contributed to the bullish sentiment. Furthermore, Bitcoin has historically exhibited a cyclical pattern, with a parabolic rise occurring approximately 60 days after each of the last three halvings, following a period of sideways movement.
Given the current bullish trend in Bitcoin's price, many investors are wondering if now is a good time to invest. What factors should they consider before making a decision?
Rajagopal Menon: While the current bullish trend may seem enticing, it's crucial to consider Warren Buffett's
