Believe it or not, there remain traders that are macro bearish on Bitcoin. That’s to say, there are some investors that think the capitulation crash to $3,700 was not the worst of the bear trend.
There’s a prominent cryptocurrency analyst, for instance, who says that as long as Bitcoin remains under $10,500, he remains bearish. So bearish, in fact, that he believes the cryptocurrency is on track to plunge towards $2,000 — and maybe even lower — in the coming year or two.
Yet one commentator says he cannot understand how people are macro bearish on BTC due to the fundamentals of this nascent market.
According to data from Picton Mahoney and shared by Dan Tapiero, there has been approximately $20 trillion worth of stimulus from governments and central banks all around the world since the ongoing illness started.
This is equivalent to the annual GDP of the U.S. and approximately 25 percent of the world’s GDP.
In a world where the intrinsic value of fiat money drops, Bitcoin stands to benefit, as its scarcity is enforced by hard-coded block rewards.
As Tuur Demeester postulated in a recent interview, there’s a good chance Bitcoin hits $50,000 in the coming years “especially given just how crazy the money printing is.” He even mentioned the $100,000 figure due to the zaniness of the ongoing macro environment.
Paul Tudor Jones, an investor worth in excess of $5 billion, released a report earlier this month entitled “The Great Monetary Inflation.” He wrote in that report that he would be investing his fund’s capital into Bitcoin because of the inflation of fiat monies.
The money printing is far from the only macro factor boosting Bitcoin.
As reported by Bitcoinist previously, there have been growing tensions over Hong Kong’s democracy.