Why a veteran investor believes Bitcoin will revisit its $20,000 high within 12 months – CryptoSlate

We are in uncertain times for global markets, theres no doubt about it; all asset classes from Bitcoin and equities to bonds and commodities have seen dramatic sell-offs over the past few weeks, crunched under the pressure of one of the most drastic economic and health crises ever, epitomized by the 3.3 million jobless claims number that came out of the U.S. last week.

Despite this macro backdrop, a prominent investor the current head of one of the first crypto venture funds and a former institutional investor at firms like Goldman Sachs and Deutsche Bank recently argued that this crisis will only validate Bitcoin, and set it on a path to $20,000.

Since coronavirus lockdowns were put into effect around the world, the economy has ground to a screeching halt: companies that once had booming, record revenues have now seen their profits dwindle and dwindle, so much so that many have been forced to lay off their employees, often over Zoom calls.

With this, economists have charted GDP contractions greater than those seen in the Great Recession of 2008 and unemployment potentially beating that seen at the peak of the Great Depression. Yes, the Great Depression

As a result, governments and central banks have come out en-masse, attempting to stabilize the flagging economy with ever measure in their arsenal. The Federal Reserve alone, for instance, has deployed a majority of its monetary policy bazooka, cutting interest rates to 0%, injecting billions (and soon-to-be trillions) into the financial markets to ensure liquidity remains, and abolishing reserve requirements for U.S. banks.

According to Dan Morehead founder of blockchain-focused fund Pantera Capital this trend is extremely bullish for Bitcoin.

He wrote in his firms latest newsletter that the fact that the Overton window is shifting towards the debasement of fiat through printing money will dramatically aid scarce assets:

As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. The corollary is theyll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.

As to how exactly it will affect Bitcoin, Morehead explains that with this backdrop, it will take around 12 months for the BTC price to set a new record above $20,000, which would mark at least a 230 percent rally from the current price point of $6,200 in under a years time.

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Why a veteran investor believes Bitcoin will revisit its $20,000 high within 12 months - CryptoSlate