Ex-Goldman Sachs exec: Whether the US dollar falls or rallies, Bitcoin will explode higher

For the longest time, a common narrative in the Bitcoin market has been that if the U.S. dollar rallies, the price of BTC will fall - just as the price of gold normally trends higher on a weak dollar.

Though even COVID-19 and the subsequent lockdowns have ravaged the world economies, forcing the dollar dramatically higher against foreign currencies, Bitcoin has surged higher - as has gold, now at an over-five-year high.

A prominent Wall Street veteran expects this unorthodox trend of the dollar and Bitcoin rallying in tandem to continue.

The dollar is poised to rally even further than it has, and that's bullish for Bitcoin.

Since the start of the year, the U.S. Dollar Currency Index - the U.S. dollar's performance against a basket of foreign currencies - has rallied up 3.5 percent.

Chart of the Dollar Index since the start of the year from TradingView.com.

"But the dollar will continue to rise as demand for dollars rises. And that in turn slows global growth, making the dollar shortage worse and the solvency crisis worse as cash flows fall globally, which makes dollar in even short supply."

To Americans or those who are holding U.S. dollar assets, this may sound like a good thing: a rallying dollar means traveling and buying foreign goods can be done on the cheap.

Importantly, Pal added that there is a world in which he's wrong and the dollar actually begins to trend lower, potentially due to the trillions of dollars being printed to stimulate the global economy.

A strong dollar isn't the only factor Pal believes is bolstering the Bitcoin bull case.