Macroeconomic investor and renowned fund manager Dan Tapiero has commented on factors that could become important catalysts driving the strong recovery of Bitcoin (BTC) and the cryptocurrency market.
In a recent interview on the Milk Road YouTube channel, Tapiero emphasized that synchronization in monetary policies is a prerequisite for digital assets to truly explode.
He stated that Fed Chair Jerome Powell is currently 'restraining' policy changes. However, Tapiero believes that once Powell makes the necessary adjustments, Bitcoin and the entire cryptocurrency market will enter a phase of strong growth.
“Fiscal tightening policies need to be balanced with monetary easing measures to maintain stability. This will help the economy avoid a sharp decline in liquidity as well as factors driving demand. In recent times, fiscal policy has played an important role in boosting demand, but that is no longer the case. I believe monetary policy needs to compensate for this shortfall, and the US dollar has begun to reflect this, as evidenced by its recent weakness.
In an ideal world, Treasury Secretary Bessent and Trump, or anyone else, should meet with Jay Powell and say: ‘We are about to implement the largest fiscal tightening policy in the last 50 years, give us a little monetary leeway to coordinate in addressing this issue…’
However, for some reason, Powell remains very cautious. I believe that in the coming months, economic data will show that he needs to take action. This will create significant momentum for Bitcoin as well as the entire digital asset ecosystem—from Ethereum, Solana, to other projects—helping this sector to explode again. A part of the cryptocurrency world still relies on liquidity from the traditional financial system.”
Tapiero also emphasized that regardless of how much potential Bitcoin and decentralized finance (DeFi) have for strong growth, relying on liquidity from traditional finance is still an indispensable factor. If the conditions he mentioned are met, Bitcoin could reach a price close to $200,000.
“Although the positive fundamentals related to Bitcoin and other projects in the cryptocurrency space, including the development of DeFi, stablecoins, and even non-fungible tokens (NFTs) are gradually returning, I believe that just a small amount of liquidity flowing from the traditional financial system could lead Bitcoin to reach my long-held target of $180,000.”
According to data from Bitcoin Magazine, Bitcoin is trading at $104,472, recording a slight increase for the day.
