Macro expert Luke Gromen says he is “super” bullish on Bitcoin for the next six to 12 months – here’s why

Veteran investor Luke Gromen expects Bitcoin (BTC) to rise in the coming months due to a favorable macroeconomic environment.

In a new interview with crypto journalist Natalie Brunell, Gromen highlights the US government's nearly $35 trillion debt.

With national debt at a record high, the macro expert says there is nothing the Fed can do to stop the resurgence of inflation, which will ultimately lead to investors seeking refuge in stores of value like Bitcoin to preserve their wealth.

“I am extremely bullish on Bitcoin, tactically and strategically, at least for the next six to 12 months, because whether the Fed raises or lowers interest rates doesn't matter.” In my opinion, inflation and budget deficits are rising.

This can only happen if the dollar weakens. Then budget deficits will actually tend to fall.

So my choice is: higher tariffs [and] more inflation, lower interest rates [and] more inflation or lower deficits with a weaker dollar [means] more inflation [and] more degradation.

I think things are going really, really well for Bitcoin and, more importantly, the fundamentals are there, but if you look at the positioning, there's still a lot of skepticism about Bitcoin and there's still over $6 trillion in money market funds . There's still a lot of worry, there's still a lot of belief that the Fed is saying, “Oh, inflation is going up again, the Fed is going to step in and bring inflation back down.”

No no no no no. You can try, and you might see a pullback… If we assume that the Fed cuts rates twice this year, and that the Fed raises rates this year, there will likely be a sell-off in Bitcoin and industrial stocks , maybe even in stocks gold… for about a week or two.

And then there will be the realization, “Oh God, the Treasury market isn't working, we can't have that.” So that will start the discussion, and ultimately interest rates of 6% will be more inflationary than 5.25% with a lag. , because there is $35 trillion in debt that is now rising as a percentage of GDP and Fed rate hikes will cause it to rise at a faster rate as a percentage of GDP.

So I'm very bullish on Bitcoin because I have the fundamentals: it's going up, it's inflation; they don't increase, it's inflationary; they don't increase, it's inflationary; They cut back, it's inflationary.

If they want to keep the wheels on the wagon, they have to weaken the dollar or weaken it further. All of this is good for Bitcoin.”

At the time of writing, Bitcoin is trading at $64,637.

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