Bitcoin crashed through an all-time record high against other currencies last week. This move was simultaneous with mass capital flights in both the US and EU stock markets. One might ask whether the smart money is betting on massive stock market corrections happening soon.
The imminent raising of the US Government’s debt ceiling necessitates further dollar debasement. Some say that the inevitable inflation can only continue to feed the crypto bull market that we’ve been seeing.
However, no sooner had BTC roared past $5,000 when China’s central bank officially declared ICOs (initial coin offerings for cryptocurrencies) to be illegal, announcing that these had “Seriously disrupted the economic and financial order,” demanding entities which had raised money for these to refund their investors immediately.
This caused a massive sell-off in the cryptocurrency market, with Bitcoin now off 5% from its record high and the altcoins down by between 9%-23%. The Dollar Vigilante’s Jeff Berwick says, “While many ICOs and altcoins could be greatly damaged the more that governments attack them, they can’t attack Bitcoin. There is no central Bitcoin office. No CEO. It’s a self-running application. The only way to stop Bitcoin is to turn off the Internet.”
He also notes that a lawyer at the firm that’s been representing the Winkelvoss twins since 2013 in their bid to get their Bitcoin exchange-traded fund (ETF) approved by the US Securities and Exchange Commission (SEC) recently gained a position within the SEC’s Division of Investment Management that regulates ETFs, which could mean that the Winkelvoss twins might finally prevail.
The SEC rejected the last round of ETFs in March 2017, which Berwick says deprived Americans of $40 billion in capital gains but of course, nobody needs the approval of the SEC to buy Bitcoin directly.
In this clip, CryptoSpark reports that Standpoint Research Founder, Ronnie Moas predicts that Bitcoin will go to $20,000 in the next three years; with a market capitalization of $2 trillion within the next ten years. For his part, CryptoSpark is betting on a market cap closer to $1 trillion, which is still a long ways from the current capitalization of $160 billion+.