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Economist Peter Schiff has been in sharp opposition to Bitcoin for an extended period of time, and his position on the digital asset has not changed over time. However, the economist's recent predictions might actually be in favor of Bitcoin if they ever do pass. Just before the end of 2022, Mr. Schiff shared his thoughts on inflation, the U.S. dollar and the direction these two elements are taking.
Just before the end of 2022, Dr. Schiff shared his thoughts on inflation, the U.S. dollar and the direction he believes those two factors are taking.
Inflation is going to skyrocket, the dollar is going to suffer. Schiff believes that the current belief that inflation would slow in the New Year is false. Schiff believes that the current belief that inflation would slow in the New Year is false.
The economist told his more than 900,000 Twitter followers that the strong performance of the U.S. dollar index was not any indication of continued strength. He noted that the index had ended 2022 at its lowest level in six months and that this is what he plans to be the theme for 2023. He also noted that this was one of the worst years for the USD index.
The USD index may have had a solid year. It ended the year at a six-month low, down 10% from November. If I'm right the #inflation problem is about to get much worse.
— Peter Schiff (@PeterSchiff) December 30, 2022
As for inflation, he explains that the weakness of the dollar will see inflation “get much worse.” Peter Schiff (@PeterSchiff) Dec 30, 2022. He also expects the stocks which performed badly in 2022 to continue the same trend in 2023.
He also expects the actions that failed in 2022 to continue the same pattern in 2023.5 BTC 300 Free Spins for new players.
One environment in which bitcoin thrives in is during times of weak dollar values. Why this might be good for the bitcoinone environment in which Bitcoin thrives is in low dollar value periods. As the dollar index strengthens, investors tend to look to other assets that have turned out better to maintain their value over time.
BTC price trending below $16,700 | Source: BTCUSD on TradingView.comAn example of this was back in 2021 when the dollar index had hit a three-year low. By 2021, the dollar had hit its lowest level in three years.
Related Readings: Is NFT's bull market back on track? The data shows that the same trend occurred in the 2017 bull market, while the index had also dropped to its lowest level in three years.
Both times, the weaker dollar had played just in Bitcoin's favor and propelled each bull market. If Schiff's forecast is right and the dollar weakens further in 2023, then a bullish rally for bitcoin is possible because investors flock to shelter in inflation cover. If Schiff's prediction is right and the dollar depreciates again in 2023, then a bullish rally for bitcoin is possible because investors flock to shelter in inflation cover.
