Forbes senior writer Billy Bambrough wrote on the 15th that after the Bitcoin spot ETF is approved for listing in the United States, Bernstein analysts are optimistic that the market value of Bitcoin will surge from the current US$1.3 trillion to US$4 trillion by the middle of next year. At the same time, Wall Street is also preparing to embrace cryptocurrency spot ETFs such as Ethereum and Ripple.
The article mentioned that the Federal Reserve has recently quietly admitted that gold is replacing the U.S. dollar, and the International Monetary Fund (IMF) has also recently issued a report warning that the U.S. dollar's share in the foreign exchange reserves of central banks and governments is declining significantly.
The Federal Reserve Bank of New York issued a report on the 3rd stating that the proportion of the U.S. dollar in official reserves is declining and the proportion of gold held by central banks is increasing. However, the report stated that this trend is limited to "a few countries."
However, Billy Bambrough said that some commentators disagree with the New York Fed's statement. Balaji Srinivasan, former chief technology officer of Coinbase, pointed out that the "few countries" mentioned by the Federal Reserve represent a population of 3 billion, which means that 37.5% of the world's population is moving from Dollar moves to gold.
The article pointed out that some commentators are more optimistic about the potential of Bitcoin. Billionaire Chamath Palihapitiya, founder and CEO of Social Capital, predicts that as countries adopt Bitcoin, Bitcoin may "completely replace gold" and push its market value to Equivalent to US$15.7 trillion in gold, independent candidate for the US presidential election Robert F. Kennedy Jr. even believes that the only way to save the US dollar is Bitcoin.
Will the wave of interest rate cuts support the currency market’s surge?
It is worth noting that the article pointed out that at a time when the status of the US dollar is heading towards a recession, and after experiencing the historic stimulus and money printing measures of the new coronavirus epidemic, the Federal Reserve is preparing to continue the anti-inflation war that has been going on for two years. Later, interest rate cuts began.
The article quoted Bitfinex analysts as saying that central banks around the world have begun to cut interest rates, which indicates that the trend of monetary easing has begun. It seems obvious that the Bank of England and the U.S. Federal Reserve will follow up with interest rate cuts in the coming months. This A global liquidity cycle suggests that money supply is expected to increase, which will support rising asset prices, including cryptocurrencies.
The Bank of Canada announced an interest rate cut of 0.25% on the 5th, becoming the first central bank in the G7 industrialized countries to initiate an interest rate cut. The European Central Bank also announced an interest rate cut of 0.25% on the 6th, which was the first time the European Central Bank cut interest rates in the past five years. Arthur Hayes, founder of BitMEX, previously The author believes that the wave of interest rate cuts by global central banks has begun in advance, and he recommends long. He is also optimistic that the arrival of the copycat season is not far away.
