Blockchain.com CEO explains what a U.S. default could mean for cryptocurrencies

• Blockchain.com CEO says debt default will initially hit crypto.
• Peter Smith expects 2024 to be a strong year for cryptocurrencies.
• He made the comments today at the 2023 Qatar Economic Forum.

In the short-term, cryptocurrencies will likely take a hit if the United States indeed ends up in its first-ever debt default, says Peter Smith – the Chief Executive of Blockchain.com.

Smith expects a quick recovery though

Interestingly, though, he does not expect that weakness to last for long. Smith’s medium to long-term outlook on the market remains positive as ever.

On a long horizon, these are probably good for crypto … if the U.S. government defaults, we’ll see a quick pullback and then a very strong push upward in the crypto market.

He also confirmed today that the crypto exchange was considering expanding its small Middle Eastern Office in the United Arab Emirates.

It is also noteworthy that House Speaker Kevin McCarthy expressed confidence this morning that Republicans will reach a deal with the White House on debt ceiling in time.

2024 could be a high year for crypto

Also on Thursday, CEO Peter Smith forecast 2024 to be a very strong year for the crypto space.

His view is based on a pattern that this market seems to follow – 2021 was a high year, 2022 was a major correction, 2023 is recovery, and the next year will be of exponential growth again. Speaking at the 2023 Qatar Economic Forum, he added:

I think the crypto market is going to be much bigger in the future than it is today. I expect the market to be positive for the next twelve to eighteen months.

Remember that the total supply of bitcoin is scheduled to halve in April of 2024 – an event known to benefit the crypto market at large.