Bitcoin may be about to skyrocket to $20,000, according to the CEO of one of the most influential firms in the crypto industry. This comes as the US Federal Reserve is implementing “emergency measures” to keep the economy running smoothly.
BitMEX CEO says “get ready for Bitcoin $20,000”
Specifically, the CEO of BitMEX, Arthur Hayes, took to Twitter to share his forecast for the near future. According to his tweet, the derivatives giant’s CEO is certain that quantitative easing from the Federal Reserve may indirectly lead to an injection in the crypto market.
In fact, Hayes indicates that the quantitative easing measures may erode trust in the US dollar – and highlights an issue with fiat currencies in general. This tweet, which reads “QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000” was sent on September 18th.
This is one day after the Federal Reserve decided to decrease interest rates on certain loans. This measure was very effective, as it reached “more than 10%, or four times its target”. Consequently, a whopping $53 billion were effective injected into the US economy.
This quantitative easing effort is the first time the Federal Reserve has made an “emergency injection” into the economy since the late stage of the 2008 financial crisis. A price target of $20,000 for Bitcoin is seen as lofty by some, but the reasoning behind Hayes’ comments is sound.
Could quantitative easing boost the crypto industry?
Moreover, the view that eroding trust in fiat currencies as well as rising economic uncertainty is universally accepted as driving crypto adoption. As such, it is also one of the most important drivers for price increases in the crypto market.
Nevertheless, this is not something limited to only the United States. In the European Union, some spectators believe that the central European bank, the ECB, is about to commence quantitative easing.
This is what Hayes’ comment about “QE4eva”, or “quantitative easing forever”, refers to. This is not, however, the first time that Hayes predicts a Bitcoin price of $20,000. Earlier this month, the BitMEX CEO made a similar comment.
With that said, one should note that BitMEX is still in the limelight of US lawmakers and regulators. These believe that Americans may be bypassing BitMEX’s geo Blocking, in order to access the crypto platform.
As such, it remains to see whether Hayes’ “Bitcoin soon at $20,000” comment will indeed become a reality. Furthermore, it also remains to be seen when this price increase takes place.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.