Bitcoin soon at $ 50,000? State bankruptcy as a trigger?

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An analyst believes Bitcoin could soon stand at $ 50,000 if Bitcoin can keep the current level at $ 6,000. Accelerated by the unimaginable amount of new money and the national bankruptcy of some countries.

It can happen quickly now

The analyst Su Zhu, CEO of Three Arrows Capital, who already predicted the Bitcoin rally in January 2020, believes the Bitcoin price will be $ 50,000.

In December 2019, when most believed the bitcoin price would continue to crash in the coming period, the fund manager posted an opposite opinion. So he wrote that it wouldn’t surprise him that Bitcoin would soon rise to more than $ 9,000. He cited the signs of bitcoin accumulation and the cash flow back to riskier investments as the reason.

Should he be right this time too?

In his view, the moment has come for which Bitcoin has been waiting. The emerging markets are currently developing an increasing risk of national bankruptcy. The USD dollar is also in a very difficult situation where significant inflation is inevitable due to the large amount of new money. In his opinion, it was “relatively quickly possible” for BTC to reach the $ 50,000 per Bitcoin.

The requirements are there, but is the Bitcoin ready?

In fact, emerging markets such as Turkey, Argentina and Venezuela have been struggling with massive hyperinflation for a long time. The last country, for example, had an unimaginable 1,000,000 percent inflation at the end of 2018. Now in the time of the Corona crisis, the countries are running their money printing machine at full speed and printing enormous amounts of new money. So-called helicopter money is supposed to keep the economy alive. But it is precisely this amount of money that may lead to higher inflation in industrialized countries as well. This is where Bitcoin could become the winner. There could be an escape from Fiat money. Bitcoin could then finally become a safe haven for investors. The only question is whether Bitcoin is ready. After all, the Bitcoin price recently plummeted 40%. The stock-to-flow (S2F) model also gives a ray of hope:

Source: medium.com

The combination of the upcoming halving in mid-May 2020 and inflation could push Bitcoin far up. So far, the Bitcoin course has pretty much followed the model. Accordingly, there should be a significant rise soon, which could push Bitcoin up to over $ 50,000. So the analyst’s theory is not wrong.

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