Dan Moorhead, CEO and founder of Pantera Capital , the operator of the blockchain investment fund, says Bitcoin (BTC) is ahead of his company's forecast of $ 115,000 this summer - meaning the digital currency could exceed $ 100,000 in the next few months or even weeks. .
He claimed that one of the factors driving the movement was likely inflation, which he saw was already taking off in the US, despite government figures.
He stated that the Federal Reserve's Consumer Price Index (CPI) will not show the true nature of inflation, as he said in a recent investor newsletter,
“The CPI target mostly includes things with unlimited supply - flat screen televisions, slippers. With the massive recession in the global economy, it will be very difficult to see inflation in these things. That's why I am convinced that the Fed and other central banks She will keep her foot on the throttle. "
He claimed that “lockdowns and stimulus packages have left consumers in the rich world with substantial savings and pent-up demand,” with savings rates “rising to 16.0% in the third quarter of 2020 and 13.4% in the fourth quarter” from just over 7% in 2019.
This, he said, would lead to "massive inflation of things where the quantity cannot be diluted", such as gold, real estate and Bitcoin.
Although there was "a limited supply of stocks," Moorhead noted that Fed Chairman Jerome Powell "has clearly stated that there is no limit" to the supply of money from quantitative easing, quoting the Fed Chairman as he stated last March:
When it comes to this lending, we will never run out of ammunition. This is not happening. "
“He's like Rambo,” said Supremo Pantera.
He quoted Mark Twain's famous financial advice: “Buy land - they don't make it anymore,” adding that “land” can now easily be replaced by “Bitcoin”.
Referring to the sentiment behind the hugely popular "money printer" last year, Moorehead said,
"What happens when the market is flooded with a massive amount of your product [the dollar]? The price drops."
At 9:05 UTC Wednesday morning, Bitcoin is trading at $ 55,775. Its price remains unchanged in a day, while it is up 2.2% in a week and 17.6% in a month.
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