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Blockchain.com crypto platform CEO Peter Smith and Standard Chartered bank top manager Jeff Kendrick spoke about the prospects of the cryptocurrency market in connection with the impending US default.
Speaking at the Qatar Economic Forum hosted by Bloomberg, Blockchain.com CEO Peter Smith suggested that if the US defaulted, it would negatively impact the crypto space, but not for long. In the long term, the cryptocurrency market will grow. At the same time, Smith expressed the hope that the US authorities will still find a solution to increase the debt ceiling.
“A recession in the US could be bad for crypto assets. Since they are high-risk assets, people will want to get rid of the risks. Recall the strong market fluctuations this year, when American banks began to fail. I think if the US government defaults, we will see a quick pullback of cryptocurrencies and then a strong push up,” Smith said.
Geoff Kendrick, head of foreign exchange research at Standard Chartered, also believes that a possible default will be a positive development for bitcoin. He predicts that if the debt ceiling is not raised before the expected deadline in July and a default does occur, then the price of bitcoin could reach $50,000. This is due to the fact that investors will invest in the first cryptocurrency, which can become a “safety cushion » in times of crisis. In early May, Kendrick suggested that if the United States defaulted on its debt obligations, bitcoin could jump the $40,000 mark.
According to Bloomberg, Bitcoin has entered the top three most attractive assets amid the risk of default in the US after gold and Treasury bills. Recently, entrepreneur Robert Kiyosaki, who wrote the best-selling book Rich Dad Poor Dad, urged investors to protect themselves from the collapse of the US financial system by buying bitcoin and precious metals.
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