Ex-Prudential CEO Predicts Spike in Bitcoin Prices Post Labor Day
George Ball, CEO of investment firm Sanders Morris Harris and ex-CEO of Prudential Securities, has done a complete turnaround on Bitcoin. Known as a Bitcoin “opponent,” he now advocates the cryptocurrency and has predicted that there is going to be a sharp spike in prices post-Labor Day on September 7.
This change of heart is based on the current American economic scenario that is struggling to stay afloat and is heavily dependent on federal subsidies due to the COVID-19 pandemic, both in the short and long term.
Presently, the government is pumping in billions of dollars in subsidies to stimulate the markets. Every sector is being given a leg-up, right from unemployment benefits to financial support for trade and industries.
However, the government cannot prop up the markets forever. The pandemic shows no signs of waning; rather, there is an exponential rise in fresh cases and fatalities.
Ball warns that at some point of time, and that is not very far away, the huge liquidity inflows from Federal funding is bound to die down. Creating fresh stimulus packages or subsidizing people will not be an economically viable proposition. Hence, the wealthy investors and traders will probably turn to non-traditional channels of investment like cryptocurrencies, especially Bitcoin.
The seasoned star of Wall Street during the 1970s and 1980s predicts that the surge in investments in Bitcoin will pick up after Labor Day. Presently the market is under tremendous pressure from the effects of COVID-19 as well as the usual summer stagnation. Investors are eagerly waiting for the spark that would fire up the dormant markets and that will only take place early September.
He is quick to stress, though that is opting for cryptocurrencies as a different investment choice is not to seek a tax haven but to have something in the portfolio that will not be affected by government actions.
George Ball’s prophecy is echoed by Mike Novogratz, CEO of leading digital-current firm Galaxy Digital. In an interview with Bloomberg TV way back in April when the pandemic had started taking its toll, he said that he had observed high-net-worth individuals and hedge funds buying cryptocurrencies. He believes it is to build a firewall against uncertain times in the traditional currencies and economy.