Opinion: tech stocks and “high-quality crypto” are the only assets that can survive a likely dollar depreciation

2 min readMay 2, 2023

Factor LLC CEO Peter Brandt believes that Bitcoin will outperform other cryptocurrencies in the near future.

“I am of the opinion that bitcoin will bury all impostors. In the end, there will be only one king of the hill,” he wrote.

The expert pointed to the graph of BTC dominance, illustrating the share of bitcoin in the entire capitalization of the cryptocurrency market. Brandt believes that this indicator is preparing for a breakthrough after consolidating for two years in the form of a large rectangle. While the trend is in the “limiting range”, however, the exit from it will be decisive for the crypto coin, the analyst is sure.

Experts from Berenberg Bank expressed the opinion that the expected halving, as well as a mix of circumstances, evolution and time, will become a prerequisite for the growth of BTC. Confirming their findings, analysts recalled that bitcoin turned out to be almost the only crypto coin that the SEC called a commodity, and not a security.

It is understood that the likely pressure from regulators on the industry will not affect the strategy of BTC investors. Berenberg also expects a significant increase in the bitcoin rate after the halving next year.

“Historically, Bitcoin halving is associated with a significant increase in the price of the asset. We believe that the next event is no different from the previous one and can serve as a catalyst for an increase in the value of the asset,” the Berenberg Bank believes.

According to the former top manager of Goldman Sachs Raoul Pal, securities of IT companies and “high-quality cryptocurrency” are the only assets that can survive a possible depreciation of the US dollar.

“Digital assets have the highest beta on the balance sheets of the world’s central banks. Not real estate, not gold, not SPX, not bonds, not emerging market stocks. All of them depend on the balance sheets of the Central Bank or worse,” Pal said.

In addition, he noted that Bitcoin is “literally invented for such cases”, and ETH provides additional opportunities for profit growth.