Bitcoin Expected to Rise with Increased Dollar Supply, Says Strike CEO

Jack Mallers, CEO of the Bitcoin payment platform Strike, expects that recent federal actions will positively impact Bitcoin’s value.

In a recent Kitco News interview, Mallers highlighted the current economic challenges facing the US, particularly in managing the dollar’s value amid recent market turmoil.

The sharp declines in stocks and cryptocurrencies on August 5 were driven by the unwinding of the yen carry trade. Japanese investors had borrowed yen at low rates to invest in high-yield assets like stocks and crypto.

When the yen’s value increased, these investors were forced to sell off their assets to repay their loans, causing market disruptions.

Mallers suggests that the US government may respond by increasing the money supply to stabilize the economy. He predicts that as more dollars are injected into the financial system, Bitcoin is likely to outperform other assets due to its role as a hedge against currency debasement.

According to Mallers, Bitcoin’s performance could lead broader market trends, with traditional indices such as the SP 500 potentially following Bitcoin’s lead in the recovery.