- Bitcoin continues to remain in USD 6,000 range for Sunday
- Traders are predicting a new ATH for Bitcoin in 2020
- Crypto influencers question the wisdom of US infinite money supply policies
Bitcoin has been trading rather weakly relative to the past few weeks, and continues to remain for most of the day in the USD 6,000 range.
One big positive news today has come from major crypto exchange Kraken, who has said that a new user poll they conducted shows that the majority of Bitcoin traders are expecting BTC to record a new all-time high this year.
Kraken had posed the question to 400 of its VIP traders, of which an almost equal number (40%) of respondents either described themselves as investors or as traders. About 15% said they were institutions, while the remaining 4% said they were miners, exchanges or payment processors.
These were big crypto players, with 84% of them managing less than USD 10 million in capital, while just over a tenth (11%) had between USD 10 million to USD 50 million in management. The rest had more than USD 50 million.
Of note is how they were targeting the high for BTC/USD in 2020, with an average coming out at USD 22,866, about 14% more that the previous high years ago just below USD 20,000. Interestingly, they did not see the same fortunes happening for Ether (ETH), with a maximum price tag of USD 810 given.
The big boys in speculation are also bulls, as 44% of them believed we are in a bull trend, though 22% said it was bearish and the remainder were uncertain.
Meanwhile, Crypto Twitter has been awash lately with all kinds of criticisms at the US central bank, whose Federal Reserve has been on a series of actions that can be seen as proving the case about fiat and making the case for Bitcoin. Whether it has been about pumping in more liquidity through increasing repo actions, or lowering bank reserve requirements to zero (effectively, needing to reserves to back additional dollars) or the willingness by the US Federal reserve to print “infinite” dollars, one has to sit back and wonder if the hard money logic of Bitcoin will finally make sense to previous doubters.
At a recent press conference, US President Donald Trump himself said about the US dollar that:
“The beautiful thing about our country is $6.2 trillion — because it is 2.2 plus 4 — it’s $6.2 trillion, and we can handle that easily because of who we are, what we are… It’s our money; we are the ones, it’s our currency.”
— Samson Mow (@Excellion) March 28, 2020
Blockstream CSO Samson Mow was one of many who quoted Trump appearing to support the printing of more than USD 6 trillion, saying that this was the greatest advertisement ever for Bitcoin.
With a hugely expanded dollar supply, this direct meddling in money supply is in direct contradiction to the precept of Bitcoin in that the digital asset is fixed in terms of supply and can never be altered. Mow asked: “How much did we pay Trump to advertise #Bitcoin?”
Many commentators, who were already expecting such moves anyway, were still surprised, however, that the magnitude of the coronavirus stimulus package and preceding quantitative easing measures by the US central bank still managed to exceed logic. Crypto personality Hodlonaut, who organized 2019’s Lightning Torch transaction relay, pointed out that there was just no sense in a money situation where there was no limits. Ex-Goldman Sachs exec Caitlin Long, who is behind Bitcoin-friendly regulations in Wyoming State, also said that such a scale of intervention was the death of capitalism, with this latest move set to double the US Federal Reserve’s balance sheet to over USD 10 trillion.
GOOD NEWS?? Fed balance sheet up "only" $600m this week (to $5.3trn from $4.7trn last week)–I was expecting more. Prediction: b4 crisis ends it will far exceed $10trn. In short-term, huge dollar demand bc short-covering, but it won't last. Then timbrrrr?https://t.co/QHGx8tde3Z
— Caitlin Long 🔑 (@CaitlinLong_) March 26, 2020
Long said of the “good news” that she thought it would get better, before getting far worse:
“Prediction: b4 crisis ends it will far exceed $10trn. In short-term, huge dollar demand bc short-covering, but it won’t last. Then timbrrrr?”
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