the biggest global economic shock in generations

It seems that the past two months have marked the end of an era, and a prominent Bitcoin whale believes that the world is going to suffer one of the biggest economic shocks seen for generations. This could radically alter the structure and dynamics of society, with attempts being made by governments and central banks around the world to curb economic decline.

An investor and an "economic historian" are explaining that this turmoil could shift the world's attention to three assets, potentially proving to be bullish for Bitcoin in a medium and long term span.

A Bitcoin Whale warns investors to prepare for an economic shock

J0E007 – an important Bitcoin whale that can typically be found to make huge commercial profits at the top of Bitfinex's global ranking – explained on Twitter that he believes the current economic situation in the world is terrible.

He notes that the impending crisis is likely to unfold in waves, each with its own set of problems and complications. “It will be the biggest economic shock of our generation. It will take place in waves and over time, giving false hopes and then crushing them.

The focus of the crisis will shift across different areas. Attempts to alleviate and resolve a crisis will lead to greater confusion. " This sentiment comes in the wake of another intuition of the same Bitcoin whale, in which he had noticed that the economic reality in which we all lived before 2020 is over, replaced by a new – arduous – reality that will probably last for another 20 years.

What could this mean for BTC?

An action that will probably be taken by the Federal Reserve with the progressive worsening of the crisis will be to reverse interest rates. Raoul Pal – a prominent investor – talked about it in a recent tweet thread, in which he observes that he sees the Fed Fund reaching -2% while 10-year bond rates also turn negative.

He reflects that this will draw the world's attention to three main assets, namely the US dollar, gold and bitcoin. Over time, the value of the USD will weaken, and in the end the attention of investors will be completely concentrated on BTC and precious metal. “Dollars, gold and bitcoins will make more sense.

Later, much later, only gold and bitcoin will remain. This is an 18 to 36 month perspective. Expect many turmoil and course changes along the way. We will have to be able to navigate despite those. " As global chaos increases, the need for so-called "hard money" has never been higher and, although demand has lagged behind, it is likely to grow in the years (and even decades) to come.