With his recent remarks on the potential price surge of Bitcoin, John Deaton, a lawyer renowned for his support of XRP, has garnered significant attention in the crypto community. His statements, which are deeply rooted in current economic trends and crypto market dynamics, align with long-standing predictions made by Bitcoin enthusiast Max Keizer.Thank you for reading this post, don't forget to subscribe!
Perspectives of John Deaton on Bitcoin’s Future
Lisa Abramowicz from Bloomberg highlighted Deaton’s thoughts on a potential “perfect storm” for Bitcoin in response to his tweet. He emphasized that “While I believe the Spot BTC ETF should have been approved much earlier, the timing of its approval could create a perfect storm for Bitcoin.”
Deaton connects the possibility of a rate cut, increased liquidity, the Bitcoin halving, and the approval of multiple spot ETFs as catalysts for significant price growth. This adds weight to Max Kaiser’s prediction of $220,000 for Bitcoin.
He elaborated, “What Wall Street desires, Wall Street generally attains. And guess what Wall Street desires from the Fed? We all know that irrespective of the circumstances, in the near future (2nd-3rd quarter), there will be rate cuts and printing,” adding, “With rate cuts, increased liquidity, BTC halving, and 8-10 Max Keizer’s $220,000 won’t appear so outrageous 18 months from now, following United Spot ETF approval.
Max Keizer, a well-known figure in the Bitcoin space, has been vocal about his $220,000 BTC price target for a significant period. Their forecasts are based on an analysis of global economic conditions and their repercussions on traditional currencies and Bitcoin. Keizer recently mentioned in response, “A rate cut would certainly take Bitcoin to my $220,000 target.”
Keizer’s rationale for setting this price target includes a comprehensive understanding of BTC mechanics and global financial systems. “In the game, $220,000 is a short-term goal,” he explained. The price of Bitcoin has declined and now it will rise. Larry Fink is 50 times bigger than Saylor.”
Offering further insight into the global economic outlook, Keizer commented recently, “What is happening in the Middle East and Eurasia will collapse the global fiat money, central bank Ponzi scheme. So now the time has come. $220,000 is a short-term goal. Bitcoin is immortal. You can’t stop it. ” Ponzi schemes are delicate and always collapse.”
Emphasizing the current condition of the banking system, Keizer mentioned a few months ago, “$200 trillion of bank assets are in negative equity at the end of this week. 90% of global banks (based on market cap) are technically insolvent. The FED will have to go back to NIRP (Negative Interest Rate Policy). “This way we could get to $220,000 Bitcoin in the short term.”
Will the Fed slash rates soon?
The growing anticipation of a Federal Reserve rate cut on Wall Street significantly impacts market sentiment regarding the future price of Bitcoin, as highlighted in an article by Lisa Abramowicz from Bloomberg.
“The Fed doesn’t want to discuss a rate cut, but Wall Street is sensing an increasing possibility,” she says. This shift in approach is based on economic indicators that suggest a potential need for the Fed to adopt a more accommodative policy.
Ben Laidler, global markets strategist at eToro, succinctly summed up this sentiment, “Six months ago, if the economy had experienced a severe downturn, the Fed’s hands were tied. It would not have been able to lower interest rates. Now, change is possible.” His statement reflects the growing confidence among investors that the Fed may soon reverse its policy in response to economic conditions.
In contrast, Neel Kashkari, the Minneapolis Fed President, expresses skepticism about the immediate prospect of a rate cut. Their stance urges caution in making optimistic forecasts and highlights the unpredictable nature of monetary policy. Despite this, Wall Street and the market hold opposing views.
At the time of writing, BTC was traded at $35,310.
BTC bulls in pennant play, 1-day chart | Source: BTCUSD on tradingview.com
Featured image from CryptoLaw/Youtube, chart from tradingview.com