Shares of Bitcoin have already surged 75% over the course of 2016.
Now, the digital currency could ramp up another 165% over the course of 2017 thanks to Donald Trump’s “spending binge,” Denmark-based Saxo Bank wrote in a report titled “Outrageous Predictions for 2017.” The bank says Bitcoin could hit over $2,100.
Bitcoin is currently trading at $763.80, according to Coinbase.
The bank predicts that Trump’s plan to increase infrastructure spending, alongside further rate hikes from the Federal Reserve, will cause the already surging dollar to “hit the moon.” The strong dollar will force emerging markets to seek an alternative currency.
“Cryptocurrencies are here to stay given the history of booms and busts in fiat money and debt excesses. Bitcoin as the face of cryptocurrencies benefits from this chaos,” Saxo Bank’s global macro strategist, Kay Van Petersen, wrote. “Emerging market powers eager to move away from being tied to the monetary policy of the U.S. and the banking system as well as to adopt the block chain as a payment system prove willing adherents as they adjust to zero interest rates and the decrease in systematic risk.”
Bitcoin’s surging price over the past year has been in due part to Chinese investors seeking higher returns.
If Russian and Chinese governments decide to accept Bitcoin as a partial alternative to the U.S. dollar, Bitcoin could easily triple to over $2,100, the bank said.
Granted, the research acknowledges that it’s “outrageous.” The dollar has long been the currency of choice for international governments given its relative stability. Meanwhile, Bitcoin is famously volatile.