The price of Bitcoin could surge to a whopping $100,000 and an equally impressive market capitalization of $2 Trillion, according to some of the most notable voices in the cryptocurrency industry. Binance CEO, Chanpeng Zhao and ZeroBlock co-founder, Dan Hedl both recently took to Twitter to express their reactions to the various economic stimulus packages being thrown around, the latest of which is the 6 Trillion dollar war chest to be unleashed by the United States.
It’s no longer news that the COVID-19 pandemic has brought the global economy to its knees. All over the world, there’s talk of slashed interest rates by central banks, various quantitative easing measures across the board and even economic stimulus packages. On March 24, the U.S. government announced a COVID-19 economic stimulus package set to exceed $6 Trillion with $2 Trillion set aside for “direct assistance…liquidity and cash for individuals and small businesses.”
Following this announcement, the crypto Twitter community took to discussing the implications of such a gargantuan amount. CEO of Binance, the world’s largest cryptocurrency exchange, Chanpeng Zhao stated that it would only take a portion of that $2 Trillion to get the price of Bitcoin up to unseen heights of $100K per BTC coin and a massive market cap of $2 Trillion.
ZeroBlock co-founder, Dan Hedl echoed Zhao’s sentiment, citing that Bitcoin reaching a $2 trillion market cap was more than just wishful thinking and an actual possibility given the $6 Trillion stimulus package.
The financial markets are still pretty much in the red, but it does spark hope for a massive turnaround for Bitcoin and the overall cryptocurrency space. While everything remains theoretical at this point, in the event that CZ and Hedl turn out to be right, cryptocurrencies will be set to enter a new era. As you’re probably aware, BTC has always led the pack in the overall crypto market and any sudden price movements in its price tend to drag almost all other altcoins in the same direction.
Stimulus Package by Other Countries
The U.S. is not alone in releasing stimulus packages to alleviate the fallout from the COVID-19 pandemic. Its neighbor up north, Canada recently announced a stimulus package valued at over CAD$82 billion.
In Australia, the federal government also announced a second stimulus package with an additional AUD $46bn for direct assistance and AUD$ 20bn set aside for loan guarantee for small businesses to offset the hit to growth from COVID-19.
Bank of England governor Andrew Bailey was also quoted in a recent interview that the central bank was considering printing more money to give directly to UK households, noting that “everything is on the table.” and that they would “do what it takes to meet the needs of the economy and the needs of the people of this country.” Hong Kong mapped out a plan to give its citizens HK$10,000 each.
With all these fiscal packages being thrown around, one can’t help but wonder how the governments of these countries will be able to maintain the value of their fiat currencies as more industries continue to shut down across the globe. The crypto Twitter believes these moves to be extremely bullish for Bitcoin.
Will fiat losing value push cryptocurrencies to new all-time highs?
Way too soon to tell. The bullishness for Bitcoin expressed by CZ and Hedl’s is only a hopeful sentiment at this point. However, with more fiat currencies being printed by the day, Bitcoin’s limited supply and the approaching halving may well be in its favor.