We are in uncertain times for the global markets, there can be no doubt. All asset classes – Bitcoin, stocks, bonds, commodities – have seen in recent weeks a dramatic selloff, triggered by one of the most dramatic economic and health crises of all times.
Despite this macro-economic background is a celebrity argues the enter key Investor – the current head of one of the first crypto-Venture Fund and a former institutional Investor in companies such as Goldman Sachs and Deutsche Bank: This crisis is to confirm Bitcoin only and him on the way to $ 20,000 to bring.
One of the greatest (or worst) crises of all times
Since the Coronavirus-Block to the world in power have been set, the economy to a standstill. Once-booming business with record revenues, struggling with dwindling profits, many are forced to lay off employees – often via video telephony.
Thus, Economists have recorded a larger decline of GDP than in the Great recession of 2008, and a potentially higher unemployment than at the height of the Great Depression. Correctly the Great Depression read.
As a result, governments and Central banks abound to stabilize the flagging economy with new measures in their Arsenal.
Alone the Federal Reserve has used, for example, a large part of its monetary policy “Bazooka”, the interest to 0% reduced the minimum reserve requirements for US banks abolished, and billions (and soon trillions) of in the financial markets put, in order to ensure that liquidity is maintained.
This crisis will bring Bitcoin to exceed $ 20,000: Top-Investor
According to Dan Morehead, the founder of the on Blockchain-focused “Pantera Capital”funds – is this Trend for Bitcoin is extremely bullish.
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He writes in the last company Newsletter of his company: The fact that the Overton window devaluation moves by the money-Printing in the direction of Fiat, the scarce assets can dramatically help:
“As governments increase the amount of paper money, it takes more paper money to buy things, the fixed amounts, such as stocks and real estate over which you can without increasing the amount of money which would be to. The result is that you currencies the price of other things, such as Gold, Bitcoin and other crypto -, are to puff.“
With regard to the exact impact on Bitcoin Morehead believes that it is against this Background that approximately 12 months will take to get the BTC-price “a new record” about $ 20,000 is reached. This would correspond to a minimum of a 230-percent recovery from the current price of 6,200 dollars in less than a year.