Bitcoin Predictions Were Underestimations – Rate Cuts Would Leave Fiat DumpedSeptember 18, 2019
The price of the Bitcoin is set to see a more profound drop if the trend line support is breached at $10,120.
Tim Drapers has predicted that the Bitcoin will experience some huge gains over the next four years. The cryptocurrency is expected to grow more than 25 fold by 2023.
Previously Tim Draper predicted that Bitcoin would reach $250,000. This is the prediction he did when Bitcoin was worth nearly $5,000 in the year 2018. Now, he states that he might have underestimated Bitcoin.
Bitcoin has been trading above $10,000 with a resurgence, and therefore Draper states that his prediction will eventually come true.
Mr. Draper stated, “$250,000 means that Bitcoin would then have about a 5 percent market share of the currency world, and I think that maybe understating the power of Bitcoin.”
As people realize that their fiat will depreciate, they will decide to use Bitcoin. Of note, Draper has invested in companies like Twitch, Tesla, and Skype.
Draper has been an outspoken advocate for cryptocurrency and has been claiming that it represents the future of money.
The market projection of Bitcoin price by several other analysts have been modest, and they have predicted that the cost of the token will increase.
Nigel Green, CEO of DeVere Group, stated, “Bitcoin is likely to break out of its recent sideways trading pattern and be given a healthy boost by the Fed’s rate cut.”
Green opines that the interest rate cut will reduce the incentive of keeping the fiat currency. The rate cut leads to higher inflation and eventually reduces the purchasing power of traditional currencies, making cryptocurrencies very attractive.
The geopolitical stability, according to Green, would see Bitcoin touch $15,000. During times of uncertainty, the Bitcoin is serving as a flight to safety.
The outcome of the Brexit crisis is unpredictable in the UK and Europe. Green had forecasted interest rate cuts, and he further stated that “Cryptocurrencies will continue to do well as the global economy slows and central banks ease monetary policies in response to this.”
Several other industry figures have been predicting short-term gains for the cryptocurrencies.
Rates cuts have a major role to play when it comes to inflation. When the Federal rate cuts happen, the FX markets are expected to dump the USD.
A break below $10,120 would add strength to the bearish grip, and it will lead to a more profound drop to $9,855.