Kraken CEO Believes Weak Dollar Benefits Bitcoin 0 28

Bitcoin

Many people have been left scrambling after the massive rise in Bitcoin’s price and institutional demand has been perceived as one of the biggest contributors of the current price rally. The chief executive of Kraken, Jesse Powell, believes that this chain of events is linked with the weakening US dollar. Talking to Bloomberg in a recent interview, the crypto exchange’s CEO said that there had been a significant change in perspective of many when it comes to the dollar. For years, the greenback has held the position of the global reserve asset, but the COVID-19 pandemic has certainly threatened its position. 

Similar to many economists, a significant amount of effort has been made by Washington for helping businesses and citizens survive this global pandemic. Accelerated stimulus packages, along with additional money printing ended up pressurizing the US dollar and its price dropped. The impact of the pandemic on jobs combined with the fall in oil prices, the world’s largest economy suffered from a massive hit. Keeping true to form, all investors rushed towards a safe haven that could be used for waiting out the COVID-19 storm. They opted for Bitcoin this time around, rather than the US dollar. 

Powell went on to say that holding onto the greenback in 2020 had become extremely risky, as opposed to assets like Bitcoin. Due to the deflationary monetary policy and the finite supply of the leading cryptocurrency, it has managed to maintain its stability. Eventually, the market had been flooded with institutional investors and they had pushed up its price. According to the exchange’s boss, investors had considered tech stocks and Bitcoin as better alternatives to keeping cash. He said that Bitcoin had remained uncorrelated to the stock market historically and what was now happening was mostly because of new money being printed and the problems faced by other financial assets.

Things are expected to get a lot worse as the United States is now facing a second wave of the COVID-19 pandemic. There have also been some declarations made by the incoming Biden administration about the economic policy, which could work in favor of Bitcoin. As the President-Elect’s inauguration draws closer, he has revealed his economic plan called Build Back Better, which involves recovery spending and investment worth $7.3 trillion. According to reports, the administration is planning on spending this on several initiatives, such as education, healthcare, housing, clean energy jobs and economic fairness. 

However, this could increase the mountain of debt that the US has already accrued in 2020. Jim Rogers, the billionaire investor, also criticized Janet Yellen, the choice of the President-elect for the role of Treasury Secretary. The George Soros’ Quantum Fund founder, Rogers spoke at an investment summit and explained that Yellen had indicated a propensity of printing and spending money. With a caution-free Treasury and economic recovery the main focus of the Biden administration, the national debt may surge significantly. This could work in favor of Bitcoin and eventually push it past the $30,000 mark.

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Bitcoin Will Drop Down to $20k a Piece, Says the Guggenheim CIO 0 8

It was just two weeks ago when Bitcoin (BTC) prices were hitting their all-time high of $41k per Bitcoin (BTC). Then suddenly the prices of Bitcoin (BTC) starting dropping significantly. In a matter of 48-hours, the price of Bitcoin (BTC) came down by $11k only to bounce back to $35k in the next couple of hours.

However, since the set-back, Bitcoin (BTC) has been having a hard time keeping up. Although there were many analysts who predicted Bitcoin’s price drop was due, yet they stated that it will grow in price again. Right after the plunge, Bitcoin (BTC) did manage to make a comeback but it was not a long-lived success.

In a matter of days, Bitcoin (BTC) again came all the way down to $33k per Bitcoin (BTC) and then again bounced back. Just a few days back Bitcoin (BTC) managed to go all the way up to $38k per Bitcoin (BTC). However, it is again sitting at $33k apiece, which goes onto show exactly how volatile Bitcoin (BTC) has become.

Bitcoin (BTC) has again become extremely volatile in the past two weeks. As it keeps showing the volatile nature, many investors have started growing uncertain about its stability. There are many investors who have already sold their Bitcoin (BTC) with fears of facing another plunge since 2017.

Based on the above case, one of the senior executives at Guggenheim Partners has made his prediction around Bitcoin (BTC) price. According to the executive, Bitcoin (BTC) is currently destined to go all the way down to $20k per BTC. No matter how many times it fluctuates and it manages to go up, Bitcoin (BTC) will eventually drop down to $20k per BTC.

According to the Guggenheim executive, Scott Minerd, Bitcoin (BTC) will not be able to hit an all-time high for the rest of the year 2021. Minerd shared his views around the price of Bitcoin (BTC) in an episode of the “Closing Bell” show airing on CNBC.

Minerd predicted that after hitting an all-time high of $41k per BTC, it is highly unlikely for Bitcoin (BTC) to again hit an all-time high in the running year.

Although Minerd has made this prediction around Bitcoin (BTC) price looking at the current situation, it does not mean that he has started criticizing Bitcoin (BTC).

According to him, Bitcoin (BTC) is still one of the most reliable investment assets and will continue to grow with respect to the adoption rate. Despite his recent comment about Bitcoin (BTC) taking a plunge down to $20k per Bitcoin (BTC), he still maintains his stance on another prediction.

Minerd has predicted that one day, Bitcoin (BTC) will manage to hit the $400k per BTC mark.

Dubai Regulatory Authority to Introduce Cryptocurrency Regulations 0 8

It was almost 11 years ago when the cryptocurrency industry was introduced to the entire world with the launch of Bitcoin (BTC). At that time, the industry was strongly opposed by the regulatory authorities as well as financial institutions.

The need for the cryptocurrency industry was felt when the traditional finance institutions had started taking too much control of people’s personal information. It was the financial institutions that had started dictating people and putting too much pressure on people.

That was the time when there was a need for an alternative to the traditional financial system to be established. A system that granted people the authority to control how much of the personal information they wanted to share with the providers. The cryptocurrency industry was developed on a decentralized platform that did not appreciate the interference of third parties. Whether it was a sale, purchase, or trade, there were no intermediaries involved on this platform.

However, the financial institutions as well as many countries started opposing the idea and were not ready to adopt the platform. As time went by, the cryptocurrency industry has grown enormous and has reached a cryptocurrency community of 200 million active users.

Just recently, the cryptocurrency industry hit a market capitalization of $1 trillion. This has brought the cryptocurrency industry into the spotlight and countries from around the world have started adopting the industry.

One of the recent countries that are looking forward to welcoming cryptocurrency on its soil is Dubai. According to the recent reports, the major regulatory authorities from Dubai are currently in the process of composing the regulatory guidelines in the country.

The Dubai regulatory agencies involved in the process include the Dubai International Financial Centre and the Financial Services Authority. These regulatory authorities are currently involved in enhancing the regulatory structure as well as the regulations in the country.

The Dubai Financial Services Authority has revealed that it is planning to ready and launch the regulatory framework for diverse digital assets for the years 2021 and 2022. The announcement was made by the DFSA on the working of the digital assets regulatory framework on January 18, 2021.

Once the new regulatory infrastructure is released and implemented, it will turn out to be very essential for the cryptocurrency industry in Dubai. It will allow the cryptocurrency firms in the country to provide their services on a larger scale. They will be able to offer investors more trading assets and will also be able to target businesses and enterprises in the country.

Most importantly, the firms will have full support from the Dubai regulatory authorities in the expansion of new services being introduced in the Bitcoin (BTC) verse.

The DFSA has announced that it will be publishing two consultation papers that will be public for commenting and feedback.

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