Jack Mallers, founder and CEO of the Chicago-based Bitcoin payment provider Strike, expressed his view that the U.S. presidency does not have a significant impact on Bitcoin's future.
The identity of the next U.S. president may not have a substantial direct impact on the future trajectory of Bitcoin, according to Jack Mallers, founder and CEO of the Chicago-based Bitcoin payment provider Strike.
Mallers expressed his view in a recent interview with Savvy Finance, where he discussed the relationship between Bitcoin, politics, and the broader economic landscape. He explained that Bitcoin is likely to continue rising in value as the U.S. dollar weakens, which is being driven by ongoing government spending and economic policies. According to Mallers, the identity of the president is largely irrelevant in this scenario because both political parties are contributing to the growing deficit and inflationary pressures, which ultimately support Bitcoin’s growth.
“I don’t think the presidency matters that much for Bitcoin. I think both parties are driving us into a sovereign debt crisis, which is good for Bitcoin. They have to keep printing money,” Mallers said.
He added, “I’m so confident that we’re going to see probably the greatest asset bubble in the history of humanity. They’re going to have the highest deficit and debt in the history of humanity, which has to correlate with asset prices because that’s the only way they can afford it.”
Mallers has been vocal about his concerns regarding a potential sovereign debt crisis. He believes that the U.S. deficits are unsustainable and that this mounting debt will contribute to the dollar’s decline. He said that while Bitcoin may face short-term challenges in the event of a prolonged and painful recession—where all assets, no matter how strong, could sell off—its long-term prospects remain strong due to the broader economic climate.
“I think we’re setting ourselves up for a sovereign debt crisis, which is good for Bitcoin. But I don’t think it matters who’s president. They’re all driving us into this,” Mallers said.
Moreover, Mallers discussed a recent move by the Federal Reserve that sent shockwaves through the financial world. The central bank’s unexpected 50-basis point rate cut, its first in four years, has stirred debates about Bitcoin’s ability to endure periods of economic instability. Mallers said that Bitcoin’s behavior is closely tied to its hash rate, which plays a crucial role in price fluctuations.
“I think Bitcoin is more a function of the hash rate than the presidency or the interest rates. We saw a 50-basis point rate cut, which is a big deal, and Bitcoin didn’t really move. But when the hash rate went down 90%, Bitcoin went down 70%,” Mallers explained.
He continued, “So I think Bitcoin is more a function of the network’s strength than anything else. But interest rates do matter for the dollar fiyatı, and a weaker dollar is good for Bitcoin.”
Finally, Mallers pointed out that Bitcoin’s price movements seem to be influenced by major decisions made by the government. He specifically mentioned the actions of Treasury Secretary Janet Yellen, which he believes had a significant impact on Bitcoin’s rapid price increase from $20,000 to $70,000.
“I think the government is adding trillions of dollars into the economy, which is good for Bitcoin. We saw how Bitcoin went from $20,000 to $70,000 when Yellen was making big decisions about adding more dollars,” Mallers said.
“But after she stopped making major decisions, Bitcoin has traded mostly sideways from March or April until now. So I think Bitcoin is tracking these big economic decisions closely. And without any new actions, Bitcoin has remained steady, reflecting the market’s uncertainty,” he added.
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