Federal Reserve Could Push Bitcoin to $20,000? BitMEX’s CEO Thinks So
Bitcoin to Hit $20,000?
The Great Recession birthed — or at least popularized — two leading financial trends: Bitcoin (cryptocurrencies), and the unorthodox monetary policies quantitative easing and negative interest rates.
Since the recession, the world’s central banks have injected trillions into the economy, through open market operations and the cutting of interest rates, to keep equity markets and overall economic data trending higher.
According to a number of leading analysts and investors, the perpetuation of the latter will dramatically help the former, with the unorthodox monetary policies acting as rocket fuel for the leading crypto asset.
Arthur Hayes, the CEO of BitMEX, recently said that once the “Fed[eral Reserve] gets religion”, in seeming reference to quantitative easing, BTC could surge to $20,000.
Even if the Fed doesn’t “get religion again”, money will continue to flood into the economy via central bankers, setting the stage for scarce and non-sovereign assets like Bitcoin.
As reported by us previously, the monetary body overseeing the Euro, the ECB, cut its interest rate for deposits by 10 BPS (0.1%) to -0.5%. Simultaneously, the central bank revealed that it would be starting another round of quantitative easing (QE), promising to purchase some 20 billion Euros(around $22 billion) worth of bonds and “other financial assets” (not Bitcoin, that’s for sure) every month in hopes that the economy will remain stimulated.
Also, the People’s Bank of China (PBoC), while recently maintaining its medium-term lending facility loan rate, is expected to activate easing policies. Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, told Reuters: