Saxo Bank, a Danish investment bank has recently released its annual “Outrageous Predictions” for the coming year, 2017.
Saxo Bank, which is an online multi-asset trading and investment specialist, has projected in its speculations that the bitcoin price is likely to triple in value.
Bitcoin, the first decentralized digital cryptocurrency, gained popularity among users who opted for another form of currency apart from the dollar.
If banking systems from all over the world including sovereign states such as Russia and China move to recognize bitcoin as a partial alternative to the US dollar, this will likely to increase the bitcoin price significantly.
The current bitcoin price could potentially shoot to above $2,100, its annual prediction release.
SaxoBank, however, states that this would only happen if certain dependent factors remained constant.
One of the reasons for these huge gains in the bitcoin price is that the incoming President-elect’s administration is likely to cause turbulence in the economy of America.
The increases in the US budget deficit during the initial year of the Donald Trump presidency, Saxo Bank states, will lead to the growth in popularity of bitcoin and could create favorable conditions for the bitcoin price to skyrocket this coming year.
In the annual 2017 Saxo Bank prediction release, it is projected that during Donald Trump’s regime is likely to cause an increase in the US budget deficit from $600 billion to $1.2-1.8 trillion.
This translates to about 6-10% increment of the US’s current $18.6 trillion economies.
Consequently, this is likely to cause high inflation in the economy of America.
The said bank projects that as a result of the high inflation, the Federal Reserve will definitely be forced to accelerate the value on the US dollar.
Saxo Bank notes that this will force many people worldwide who are depending on the US dollar to seek other forms of currency.
The bitcoin price inflation will possibly create a domino effect and significantly affect emerging markets.
The alternative forms of currency in the scenario will be the bitcoins among other cryptocurrencies as most people will opt for a form of currency not tied to the central bank or the government.
The bank further states that the ultimate reason why it released its annual predictions for 2017, was that the people in the financial industry to be able to plan ahead and to cover all possibilities for the coming year.
The Donald Trump administration is likely to have an impact on the US economy.
This reasoning was dished out by bitcoin traders in efforts to explain the current bitcoin price momentum.
This is not the official position, though, only a prediction.