EToro Analyst: BTC price will rise to $ 20,000 in the next 1.5 years

Over the next 18 months, Bitcoin (BTC) could break above $20,000, according to eToro analyst Simon Peters.Moreover, the expert does not even exclude such an option, in which BTC tests the values at $ 50,000, Bloomberg reports.

Demand for cryptocurrency will grow at an explosive pace if central banks massively switch to negative rates.

Recently, American President Donald Trumpcalled on the Federal Reserve to push interest rates into negative territory. According to the head of the White House, such a monetary policy will give impetus to the activity of the business sector.

An eToro analyst said if the US and manyIf other states really move to negative rates, investments in Bitcoin will begin to grow rapidly. After that, taking a mark of at least $ 20,000 is already inevitable.

The largest digital currency showed very goodperformance this year. the coin has grown by about 30%, now it is approaching $10,000. The S&P 500 stock index has gained only 11% over the same period of time.

A similar view is shared by Panxora CEO Gavin Smith.

He emphasized:

«Whereas traditional marketsbecome uncertain, we can expect more investors to use Bitcoin as an inflation hedge and asset protection against currency devaluation.

The US Federal Reserve will issue money as much as necessary

Fed Chairman Jerome Powell said his bank would issue as much money as needed.

In an interview for CBS News, Powell recently toldabout measures taken during the current financial crisis, however, many users of cryptocurrency Twitter consider his comments as evidence of the need for the introduction of digital currencies.

In his interview, Powell recalled that this money was printed in response to the fall of the Dow Jones index in March. He also mentioned that investors turned their backs on US treasury bills.

Also, according to Powell, the Fed may issue US dollars in digital form as an addition to banknotes (although in this case we are not talking about CBDC):

“We have the ability to create money in digitalkind, since we are the central bank. We do this by buying treasury bills or bonds for other securities guaranteed by the state. This actually increases the supply and supply of money. We also print the actual currency and distribute it through the Federal Reserve Banks. ”

Asked by the presenter whether the Fed could issue even more fiat money during the pandemic, Powell said the bank would expand existing lending programs “as much as needed.”

Many cryptocurrency Twitter members have beenunhappy with the words of the Fed chairman and her policies. For example, the podcast Marty Bent recalled that with cryptocurrencies such as Bitcoin, “flooding the system with money” is more difficult to do.

"He says: “We can print it digitally.” “We” in this case means 5 people who vote for changes in monetary policy under the Fed during the FOMC [Federal Reserve Committee on Open Market Operations] meetings. These are 5 people out of 330 million Americans - all that is needed to change monetary policy. It’s more difficult to do with bitcoins. ”

“We print it digitally.”

The “we” here is five people voting on changes to monetary policy within the Federal Reserve system during FOMC meetings.

5 out of 330,000,000. That’s all it takes to change US monetary policy.

Much harder with bitcoin.

Think
pic.twitter.com/5C1io1ijOO

- Marty Bent (@MartyBent) May 18, 2020