Arthur Hayes, CEO of BitMEX has forecasted that any fresh quantitative easing would lead to a decrease of faith in fiat currency. He further said Bitcoin’s price could soon reach $20,000.
Win-Win Situation for Crypto Asset Holders
Arthur Hayes in a tweet today said that since QE4eva is here, it is time for Bitcoin to hit $20,000.
Interestingly, his analogy comes right a day after the Fed decreased its interest rates on loans which reached more than 10% or four times their target. As a matter of fact, more than $53 Billion has been pumped into the economy.
Political Uncertainty & Bitcoin Price
While cryptocurrency is yet to witness a global crisis of the same scale, it is pretty evident that Bitcoin prices have continued to benefit from political and economic uncertainty.
UK’s pound and equity markets saw turbulence across August and early days of September. The Sterling and FTSE 100 plummeted as the October 31 deadline came closer.
In an interesting turn, they suddenly displayed upward trends as the Parliament was suspended for a month to prevent MPs from creating any hindrance in the Brexit process. Interestingly, through this period Bitcoin price has shown upward trends.
With that being said, when we delve in the case of Venezuela, data from CoinDance, trading activity tracker on P2P exchanges Localbitcoins revealed that July 13 to July 20 saw the highest Bitcoin trading volume.
During that period, users on LocalBitcoins alone generated volumes of over 57 billion bolivars, beating the previous all-time high of 49 billion. This revelation came after Venezuela’s currency continued to suffer from runaway inflation, reportedly, it had reached 10,000,000%, leading citizens to resort to alternative means of storing value.
QE Efforts Continue
It would be wrong to say that only the Fed is involved in QE, the European Central Bank is also following the QE trend this year. Analysts believe that given the condition of markets, it will be a win-win situation for Bitcoin.
Crypto Community Responds
A part of the crypto community seemed to agree with Hayes on his prediction. Whereas, some were amused at this statement.
A user with twitter handle “Lisa and Edwards” said that $30K is what we should look for.
Another user with handle “ BItcoin Theory” said that while this price can definitely be reached in the near future, it is too early to say that Bitcoin price will reach $20K.
It will be interesting to note how the Fed’s further initiatives affect the crypto market. Will they affect only the prices or attract more traders and investors in the crypto space? Let us know, what you think?
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.