$15,000 in Sight for Bitcoin
Bitcoin’s momentum may have slowed once again, but investors are remaining bullish. In a note published to the in-house blog of deVere Group, the financial consultancy’s chief executive made it clear that Bitcoin is likely to bound higher in the coming weeks.
Nigel Green wrote that the devaluation of China’s currency, the Yuan/Renminbi, last week and the simultaneous move higher in the price of Bitcoin “has revealed that BTC is now becoming a safe haven asset”. Indeed, Jeremy Allaire of Circle has also stated that the inverse correlation between the Yuan/USD and Bitcoin is a sign of a growing “macro correlation”, and a sign that BTC is starting to see use as a hedge or alternative bet.
For those who missed the memo, last week, the Chinese Yuan fell under seven against the U.S. Dollar for the first time in over a decade, as the People’s Bank of China responded to fresh tariffs from the Trump administration. This coincided with an eerie sudden rally in the value of the leading cryptocurrency, gold, and other assets normally deemed a “safe haven” or “store of wealth” by analysts.
Green touched on this, expounding:
The world’s largest cryptocurrency, Bitcoin, jumped 10 per cent as global stocks were rocked by the devaluation of China’s yuan as the trade war with the U.S. intensifies. This is not a coincidence. It reveals that consensus is growing that Bitcoin is becoming a flight-to-safety asset during times of market uncertainty.
He claims that now that Bitcoin is clearly a safe haven, the growing “tensions between the world’s two largest currency economies” will result in capital inflows into BTC and similar assets “to protect them from the turmoil taking place in traditional markets.”
With this in mind, Green opined that Bitcoin could ride off the influx of buying pressure to hit $15,000 “within weeks”.
For some perspective, the cryptocurrency rallying to that level from the current price of $11,200 would imply a 33% surge. Not impossible, but likely not all too easy.
Not Alone in His Optimism
Green’s comments come shortly after prominent anti-establishment contributor to RT and Bitcoin investor Max Keiser said that he believes BTC will soon $15,000. The cryptocurrency failed to reach his target by his pseudo-deadline. However, Keiser is sure, like Green, that the growing tumult on the macroeconomic stage, as made evident by negative yields and the trade spat, will be a boon for BTC in the weeks and months to come.
$15,000 may just be the tip of the iceberg, however. Speaking to CNBC and a number of outlets in a handful of interviews, Fundstrat Global Advisors’ Thomas Lee has claimed that macro trends could help Bitcoin achieve a new all-time high by the end of the year.
Photo by André François McKenzie on Unsplash