Saturday, 19 September 2020

FED to drive Bitcoin price to $20,000 - CEO of BitMEX

- Arthur Hayes, the CEO of BitMEX, says monetary easing will become a catalyst for Bitcoin growth.
- Quantitative easing around the globe will make cryptocurrencies more attractive.
- Monetary policy of the world’s largest central bank will drive Bitcoin’s price towards $20,000, Arthur Hayes, the CEO of BitMEX believes.

The head of the platform that allows trading digital assets with 100x leverage is very optimistic about Bitcoin’s future, saying that quantitative easing religion practiced by the FED and all major centrral banks around the globe will eventually facilitate Bitcoin’s mass adoption.

"QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000,” he tweeted recently, commenting the news about the recent growth of the effective interest rate.

Basically, the central bank is losing control over rates pumping the economy with newly-printed money and creating inflationary pressure. Moreover, the regulators of the emerging markets also jump the monetary easing bandwagon, creating the case for Bitcoin price growth.

Thus, the People’s Bank of China (PBoC) is expected to launch easing policies.

“All other indicators show there is a strong case to cut rates, including real economic activity data yesterday which was a confirmation of downside risks. Looking forward, if a large part of U.S. tariffs increases become effective, the downside risks are even bigger,” Ding Shuang, chief economist at Standard Chartered, told in the interview with Reuters.

Considering an innate deflatory feature of Bitcoin, it is bound to become more attractive in the environment of irresponsible monetary and fiscal policies, Travis Kling, a former portfolio manager at a leading Wall Street fund added.

At the time of writing, BTC/USD is changing hands at $10,220, mostly unchanged both on a day-on-day basis and since the beginning of Wednesday.

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