Bitcoin has once again broken a new all time high recently as it crossed to $61,000, indicating the most recently institutionally driven rally is far from over. However, there are new considerations happening around the globe that could help catalyse the cryptocurrency towards $100,000.
PrimeXBT’s analyst Kim Chua has weighed in on the monetary polices of the US and EU and how they could be a big driving factor to the next massive rally for Bitcoin.
Last week saw two significantly positive events for the price of Bitcoin. First, the $1.9 trillion US stimulus bill is finally approved and $1,400 in stimulus checks will be given out this week to individuals.
To put things into perspective, $1.9 trillion of new USD being printed is almost 2x the market cap of Bitcoin. With the USD supply increasing by twice the size of Bitcoin in such a short time, the price of Bitcoin ought to move up quickly to make up for the difference.
Further to that, the ECB in its monetary policy meeting last week announced that it will quicken the pace of asset purchases, i.e the ECB will print more Euros in greater speed. What we are seeing is the perfect storm for Bitcoin to mark much higher. Hence, I won’t be surprised at all to see Bitcoin trading above $100,000 in the coming 1 or 2 months, explained Chua.
Bitcoin has often shown tendencies to grow in value when there are indications that traditional powerhouse currencies, like the USD and Euro, are under threat. These economic stimulus policies are intended to get things going again after the Covid-19 impact on the globe, but they are also known to inflate currencies.
Bitcoin has a hedge-like narrative in place and with constant and accelerated money printing the value of these fiat currencies could worsen causing investors to look towards alternatives. With Bitcoin now well established as an alternative investment following the likes of MicroStrategy and even Tesla investing, a demand spike could accelerate things towards six figures.
“A $100,000 Bitcoin in the coming weeks or months is thus nothing spectacular, it is a given,” concluded Chua.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.
