Bitcoin At $1 Million In 90 Days And Dollar Destroyed—Huge Crypto Price Prediction Bet Fueled By Bank Crisis And Hyperinflation

Please fol­low and like us:
Pin Share

03/18 update below. This post was orig­i­nal­ly pub­lished on March 17

Bit­coin
BTC
, ethereum and oth­er major cryp­tocur­ren­cies have surged this week amidst a bank­ing cri­sis that could be about to cause a mas­sive Fed­er­al Reserve earth­quake.

Sub­scribe now to Forbes’ Cryp­toAs­set & Blockchain Advi­sor and suc­cess­ful­ly nav­i­gate the lat­est bit­coin and cryp­to mar­ket crash

The bit­coin price has topped $27,000 per bit­coin, up over 30% since this time last week, hit­ting a lev­el it has­n’t seen since June last year. The bit­coin boom has also sent the ethereum price and oth­er major cryp­tocur­ren­cies sharply higher.

Now, after JPMor­gan ana­lysts said the Fed’s new bank back­stop pro­gram could inject up to $2 tril­lion into the finan­cial sys­tem, tech­nol­o­gy investor and for­mer Coinbase
COIN
chief tech offi­cer Bal­a­ji Srini­vasan has warned the lat­est bank­ing cri­sis could spark hyper­in­fla­tion in the U.S.—and advised peo­ple to “buy bit­coin now and get your coins off exchanges.”

It’s in a bru­tal bear mar­ket that you need up-to-date infor­ma­tion the most! Sign up now for the free Cryp­toCodexA dai­ly newslet­ter for traders, investors and the cryp­to-curi­ous that will keep you ahead of the market

MORE FROM FORBES’Go­ing Rogue’-Major Cryp­to Investor Issues Seri­ous SEC Warn­ing After Wild Bit­coin And Ethereum Price Swings

03/13 update: Srini­vasan has made a $1 mil­lion bet that the bit­coin price will be over $1 mil­lion in just 90 days, mean­ing a 3,600% bit­coin price increase by June 16. 

“Why will it be so fast? Well, hyper­in­fla­tion hap­pens fast,” Srini­vasan post­ed in a lengthy tweet explain­ing why he’s so con­fi­dent. “We’ve seen dig­i­tal pan­demics (COVID), dig­i­tal riots (BLM), and dig­i­tal bank runs (SVB). Every­thing will hap­pen very fast once peo­ple check what I’m say­ing and see that the Fed­er­al Reserve has lied about how much mon­ey there is in the banks. All dol­lar hold­ers get destroyed.”

Srini­vasan had respond­ed to a Twit­ter user with the han­dle @jdcmedlock who post­ed that he’d “bet any­one $1 mil­lion dol­lars that the U.S. does not enter hyper­in­fla­tion.” Srini­vasan out­lined the terms of the bet as, if bit­coin is worth more than $1 mil­lion in 90 days then he wins and if it’s worth less “the coun­ter­par­ty gets the $1 mil­lion … We have to define hyper­in­fla­tion in [bit­coin] vs. [U.S. dol­lars] terms because all oth­er fiat cur­ren­cies can and will be inflat­ed away.”

The bitcoin—put up on @jdcmedlock’s behalf by pro pok­er play­er Isaac Hax­ton—and Srini­vasan’s dol­lars will be held in escrow by cryp­to influ­encer and pod­cast host Jor­dan Fish, who tweets under the han­dle @Cobie.

“I am mov­ing $2 mil­lion into USDC for the bet,” Srini­vasan said. “I will do it with [@jdcmedlock] and one oth­er per­son, suf­fi­cient to prove the point.”

“The cen­tral bank, the banks, and the bank reg­u­la­tors have bank­rupt­ed all of us,” Srini­vasan, who’s been cred­it­ed with call­ing the seri­ous­ness of the Covid-19 pan­dem­ic before the health­care estab­lish­ment, post­ed to Twitter.

“They hid their insol­ven­cy from you, the depos­i­tors. And they’re about to print $2 tril­lion to hyper­in­flate the dol­lar. In the dig­i­tal age this will hap­pen very quick­ly. So buy bit­coin now and get your coins off exchanges.”

Last week, Sil­i­con Val­ley Bank (SVB), a region­al bank that spe­cial­ized in start­up and tech com­pa­ny lend­ing, was shut­tered fol­low­ing pan­ic among depos­i­tors that it was insol­vent. Sig­na­ture Bank, a cryp­to-friend­ly bank, was also shut down by reg­u­la­tors, a move that may have been due to con­cerns over its anti-mon­ey laun­der­ing controls.

For­mer U.S. rep­re­sen­ta­tive Bar­ney Frank, a co-author of the Dodd-Frank bank­ing reg­u­la­tion act, served on Sig­na­ture Bank’s board and said he believes the bank was shut down to warn against doing busi­ness with cryp­to com­pa­nies. “This was just a way to tell peo­ple, ‘We don’t want you deal­ing with cryp­to,’ ” Frank told the AP.

Ear­li­er in the week, anoth­er cryp­to-friend­ly bank, Sil­ver­gate, col­lapsed due to fall­out from the shock implo­sion of major cryp­to exchange FTX last year.

The col­lapse of SVB was the biggest U.S. bank fail­ure since the 2008 finan­cial cri­sis and sent shock­waves through the finan­cial sys­tem as cus­tomers scram­bled to with­draw cash and author­i­ties tried to restore confidence.

Over the week­end, the U.S. Trea­sury Depart­ment, the Fed­er­al Reserve and the Fed­er­al Insur­ance Deposit Cor­po­ra­tion (FDIC) said they’d ful­ly back all deposits at both SVB and Signature.

“The usage of the Fed’s bank term fund­ing pro­gram is like­ly to be big,” JPMor­gan strate­gists led by Niko­laos Pani­girt­zoglou wrote in a note to clients seen by Bloomberg.

Srini­vasan said he was send­ing up a “bitsig­nal,” offer­ing to give away $1 mil­lion in bit­coin, divid­ed by 1,000 Twit­ter users who reply to his post, to draw atten­tion to the bank­ing cri­sis and what he fears is loom­ing hyperinflation.

Sign up now for Cryp­toCodex—A free, dai­ly newslet­ter for the crypto-curious

MORE FROM FORBESCryp­to Moguls Spark Wild Spec­u­la­tion They Could Buy Sil­i­con Val­ley Bank Amid Bit­coin Price Chaos

“The entire bank­ing sys­tem is lying to you about sol­ven­cy,” Srini­vasan said. “They are try­ing to ensure you don’t exit to bit­coin before they print the money.”

Srini­vasan added “the speed of hyper­in­fla­tion” can take “peo­ple off guard.”

The unprece­dent­ed action by the Fed comes as it con­tin­ues to bat­tle infla­tion that surged to a 40-year high last year. The Fed has hiked inter­est rates at a nev­er-before-seen pace in an attempt to stamp out infla­tion but has also put banks under pressure.

“Bit­coin ben­e­fits from full-blown gov­ern­ment-guar­an­teed deposit insur­ance, from infla­tion falling back to the 3% lev­el, which allows the cen­tral bank to become less hawk­ish, and from reg­u­la­to­ry over­hang that has impact­ed sta­ble­coins such as BUSDBUSD and, recent­ly, USDCUSDC,” Markus Thie­len, head of research and strat­e­gy at Matrix­port, wrote in an emailed note.

“Bit­coin loves liq­uid­i­ty and is the pri­ma­ry cryp­to weapon of choice when those liq­uid­i­ty flood­gates are being alternated—such as now.”



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *