Here’s the Case for Bitcoin Rise to $180,000, According to Weiss Ratings | BTC News Today!!
Weiss Ratings Names Top 3 Reasons For The Fast Bitcoin Rally
The main triggers of growth will be the policy of the US Federal Reserve, the S2F model and the inflow of institutional capital.
The cryptocurrency community is not sure if this will be enough for the development of the bitcoin market.
There is still no unequivocal position on the growth of bitcoin.
The analytical cryptocurrency agency expects an imminent increase in the bitcoin market thanks to the arrival of institutions, the S2FX model and the policy of the US Federal Reserve.
Weiss Ratings, an analytical cryptocurrency agency, outlines the main reasons for the imminent emergence of the Bitcoin rally.
According to an article published on the official website by Bruce Nga and Juan Villaverde “Top 3 reasons to look forward to the Bitcoin rally”, there are at least three reasons why Bitcoin will soon show positive dynamics.
The first reason for the imminent growth, according to Weiss Ratings, is the policy of the US Federal Reserve System (FRS), which is taking unprecedented methods to support the economy from the devastating effects of the COVID-19 pandemic..
In March 2020, for example, the US Federal Reserve, as part of its economic stimulus measures, printed $ 3 trillion and made direct payments to citizens whose adjusted gross income does not exceed $ 75,000 per year..
The cryptocurrency agency called such a large distribution of “helicopter money” “monetary corruption on an industrial scale.”.
Historically, investors have invested in gold as a safe store of capital during market turbulence.
“This time they will be investing in bitcoin” – noted in Weiss Ratings.
It is noteworthy that the use of bitcoin as a repository of funds no longer causes such unanimous agreement in the cryptocurrency community as before..
Recently, the editorial staff of BeInCrypto wrote that the CEO of the digital bank Galaxy Digital Mike Novogratz no longer advises keeping a large amount of bitcoin in the investment portfolio due to the high volatility of the virtual asset..
Small step for investors
The second reason is the arrival of institutional investors.
The recent decision of the famous Wall Street billionaire Paul Tudor Jones investing $ 210 million in bitcoin, according to Weiss Ratings, is the best illustration of the understanding among big players of the usefulness of cryptocurrency.
The agency also noted the significant role of the Grayscale Trust bitcoin fund, which buys much more bitcoin than the miners manage to mine..
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Analysts at Weiss Ratings suggest that as little as 1-2% of investment from institutional investors would have already generated the largest growth in Bitcoin’s history..
The third reason Bitcoin is doomed to succeed is the Stock-to-Flow (S2F) model.
“S2F is based on common sense: the less a product, the more valuable it becomes,” writes Weiss Ratings.
Steve Forbes, editor-in-chief of the financial and economic magazine Forbes, however, does not share this position..
Earlier, Forbes said that the value of an asset is based precisely on the trust policy..
Forbes cited the sharp inflow of the Swiss franc this year as an example..
“If you look at the size of the Swiss economy and the inflow of money, you will say, ‘my God, Switzerland is no better than Venezuela,” Forbes told Center for Natural and Artificial Intelligence..
The reason the Swiss franc remains valuable despite its quantitative increase is because Switzerland has been able to prove the existence of a reliable currency over the past hundred years, Forbes said..
Weiss Ratings believe that due to the programmed deficit and constant halvings, Bitcoin should reach $ 70,000 in mid-2021.
At the same time, analysts note that even if bitcoin manages to grow by only half of the expected maximum, it will still be a new historical record..
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