Bitcoin’s Surge up to $20,000 Possible?
The popularity of Bitcoin soared as an aftermath of the Great Recession. Not only Bitcoin but another top financial trend currently enjoying more clamor is also the newest financial policies being undertaken by the central banks which include quantitative easing and zero to negative interest rates.
In a previous article, it was reported the recent move made by the European central bank by slashing its interest rate on deposits to -0.5% from a positive of 0.1% could only accentuate the value proposition of Bitcoin.
Likewise, the European Central bank declared that it would begin a crisp round of quantitative facilitating by releasing 20 million Euros into the Bond space and other assets (unstated, but financially accurate) every month to boost the economy.
Not only the European central bank, but other leading central banks have also taken similar steps which may increase the need for Bitcoin. Firstly, the injection of liquidity into the economy, open market operations and slashing of interest rates. The People’s Bank of China is also preparing grounds for quantitative easing.
Top Cryptocurrency platform, Bitmex ‘s CEO, Hayes predicts that Bitcoin may surge up to $20,000 following recent moves of quantitative easing of the Federal Reserve. This move may result in more fiat currency in circulation which will eventually boost Bitcoin.
A leading Bitcoin financial specialist issued a note that the ECB is releasing 20 million Euros into bonds and other assets are going to increase money in the economy and it’s an ideal technique for a devaluation of the currency in the shortest time.
He likens the recent moves by the central banks as a currency devaluation race, in which scarce assets like Bitcoin will come to light. He accepts that the more nonsensical the move is, the more Bitcoin will sparkle.
This additionally has been certified by a few experts that the more cash national banks release out, the higher the Bitcoin value will rise.