Bitcoin

Gains

<ul> 
 <li>Bitcoin growth may be influenced by the ‘Dollar Milkshake Theory.’</li> 
 <li>BTC Price is in rangebound motion, but ETF adoption might fuel a long-term rebound.</li> 
</ul> 
Brent Johnson, CEO of Santiago Capital, recently reiterated his “Dollar Milkshake Theory,” which could set <a href="https://www.crypto-news-flash.com/what-is-bitcoin-a-beginners-guide-to-the-worlds-popular-type-of-cryptocurrency/">Bitcoin</a> (BTC) on an upward trajectory. His prediction comes as Bitcoin price is experiencing a sideways movement, setting it at the $58,000 range at the moment. 
<h4>Johnson’s Dollar Milkshake Theory</h4> 
Johnson’s milkshake theory postulates that the US Dollar would appreciate sharply against other currencies. The theory offers an outlook on the future of the global financial system, with implications for both traditional and crypto markets. 
In a recent interview, Johnson argued that the dollar remains the foundation of the global financial system, contrary to popular forecasts.&nbsp; 
“The dollar falling is the Fed staying in control,” says Johnson. Speaking of the DXY Index, he added, “The Fed losing control is the dollar going to 125 or 135, or God forbid 170 because that’s when things start to break.” 
Johnson’s theory has severe implications for cryptocurrencies, particularly Bitcoin, often touted as an alternative reserve asset. The expert’s theory suggests a different scenario from contrary opinions in the crypto space: that a weakening US dollar will drive the adoption of Bitcoin.&nbsp; 
As <a href="https://www.crypto-news-flash.com/bitcoin-holders-could-gain-from-potential-us-dollar-collapse-says-chief-strategist/">noted</a> in our earlier report, Chris Wood, the Chief Strategist of Jefferies investment bank, opined that Bitcoin’s mainstream adoption is inevitable amid a weakening dollar. He added that investors should consider Bitcoin a long-term insurance rather than a short-term trade when incorporated into investment portfolios. 
However, Johnson believes a stronger dollar could trigger a global liquidity crisis, impacting all asset classes, including cryptocurrencies. He sees crypto as a component of a larger plan to protect against market volatility. Overall, Johnson’s theory highlights the US dollar as an important metric for understanding current situations in the traditional and crypto markets. 
Johnson’s interview also saw him delving into asymmetric bets, a low-risk, high-reward investment tactic. He advised investing a small percentage of a portfolio in high-risk, high-reward investments that have the potential to yield tremendous returns. 
<h3 id="b-bitcoin-set-for-more-gains-amid-investors-resilience-b">Bitcoin Set for More Gains Amid Investors’ Resilience</h3> 
Bitcoin’s price has been volatile in the last few months. The leading cryptocurrency dropped to $53,898 in July but has since rebounded above the crucial support level of around $58,000.&nbsp; 
BTC is trading at $58,646 at press time, demonstrating a 0.3% increase in the past 24 hours. 

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The trading volume increased by 5% to $34 billion, suggesting renewed investor interest. If this and other on-chain metrics gain more boost, it might catalyze the rapid rebound in BTC price in the mid-term.&nbsp; 
Moreover, institutional investors continue to show interest in Bitcoin through the spot Exchange-Traded Funds (ETFs) launched in January. Notably, 66% of institutional investors held or increased their Bitcoin ETF positions in the second quarter of 2024. As <a href="https://www.crypto-news-flash.com/bitcoin-etf-institutional-investors-show-confidence-two-thirds-hold-or-buy-more-in-q2/">mentioned </a>earlier, only 21% of asset managers reduced their positions amid a 14.5% drop in asset value over the quarter. 
This increased interest from institutional investors could push Bitcoin back into the $70,000 mark, according to CNF’s earlier <a href="https://www.crypto-news-flash.com/bitcoin-sell-off-triggers-bargain-prices-for-etf-investors-can-it-push-btc-price-back-to-70000/">update</a>.

Bitcoin Poised for Gains Amid ‘Dollar Milkshake Theory,’ Predicts Santiago Capital CEO

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