Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Binance CEO was always bullish on Bitcoin. This time he claims that the Bitcoin market cap can reach $2 trillion soon. This makes 1 BTC worth $100,000.
Despite the stock market has shown positive signs, Bitcoin price on Binance and other exchanges is uncertain. Let’s recall how the market reacted on 13 March bloody fall. After Bitcoin hash rate decrease, the price of the main crypto asset lost 40%. That numbers coincide. As of now, miners are slowly regaining their positions at the lower Network Difficulty. Binance CZ has rather positive forecasts for Bitcoin.
Per Changpeng Zhao, we only need a small portion of the whole world money reserve to pump Bitcoin to unseen heights.
As we get used to talk about Trillions, a modest $2 trillion market cap of #bitcoin will put 1 BTC at $100,000. Not such a hard to imagine number now, right?
As most BTC are not for sell (HODLers), we only need a small portion of that $2t to buy to reach it.
— CZ Binance 🔶🔶🔶 (@cz_binance) March 25, 2020
In case CZ is right, one Bitcoin would worth $100,000. Thus marking the new era of cryptocurrencies. Because, thanks to the old crypto market mechanics, the sudden increase or decrease in Bitcoin’s price drags half the altcoins in the same or opposite direction.
Too bad that CZ forgot to calculate the average fee that Bitcoin will need to process hundreds of thousands of transactions that will appear at such a deep sky BTC price level.
CZ Will Newer Let Bitcoin Down
Previously, Binance CEO promised that he will never let Bitcoin price move to the zero levels. However, the network itself is pretty strong to sustain the modest price level even when half the miners go away. So, when CZ saves Bitcoin, he always has an invisible company.
Jameson Lopp, the famous Twitter crypto observer says that all the help from the government to the markets could reach $6 trillion. Such a massive inflow of cash could cause the dollar’s price to decrease. Also, the local currencies will gain from the dollar collapse, hence the banks across the planet will try lowering the dollar’s liquidity. For instance, they could simply claim they have no dollar cash at the moment. Some banks have put a stop on accepting the dollar cash from the clients. Also, they won’t allow clients to withdraw dollars from the accounts.
Until the end of March, the Fed has extended its repo operation channels to $1 billion per day capacity. Also, the U.S. Fed prepares a $2-4 trillion boost package to increase lending power. No matter what, Binance’s CZ will do the best to keep the cryptocurrency at the highest level of market presence. However, don’t forget that his predictions used to be extremely inaccurate.