Bitcoin news

Binance CEO says $2 trillion Bitcoin market cap is modest



Binance CEO Changpeng Zhao (CZ) is quite bullish on Bitcoin predicting that a $2trillion valuation of the digital asset in the future. CZ stated that this figure was quite modest as bitcoin could attain it rather easily. According to the CEO of the leading crypto exchange, Bitcoin needs to hit a $100,000 price to attain this valuation.

Trillion dollars new reality

Quoting trillion dollars has been a preserve of top business leaders, policy makers, and super wealthy people. However, the term has become quite common and people are getting used to talking about trillions as the US governments plans to print new money to provide relief from the Covid19 crisis.

The US government has laid down plans to print about $6 trillion worth of new money to help bailout businesses and provide relief to those affected by the coronavirus pandemic. The US Federal Reserve also intimated to having unlimited liquidity in the tune of several trillions of dollars.

These proposed government interventions have become public with people debating the viability and long-term sustainability of these measures. As such, talk of these trillions of dollars have dominated every sector of the economic sphere.

Trillion dollar Bitcoin valuation next up

The public knowledge about the government’s plan to pump trillions of dollars in the economy therefore offered the perfect background for CZ to make his prediction via a recent tweet.

The Binance CEO figured that it is not hard to imagine Bitcoin reaching a $2trillion valuation as it only requires a small proportion of bitcoin long term HODLers to achieve this feat.

These sentiments by CZ are realistic given the current conditions in both the crypto and mainstream markets. Bitcoin has made substantial gains in the last week, with its price stabilising above the $6,500 level the past few days. This is in the backdrop of turmoil in the conventional financial markets that continue to record high volatility and general bearish sentiment.

Bitcoin price action continues to detach itself from the mainstream financial markets performance showing indications of maturity and potential to surge higher in the midst of market crisis. Bitcoin’s stability and capability to retain value is likely to attract funds drawn from conventional markets as investors look for safe investments.

With the bitcoin halving, the supply of the virtual currency is set to fall dramatically thus opening it up further opportunities for gains.

The combination of all these factors point to a likely surge in Bitcoin price that could edge the cryptocurrency closer to CZ modest prediction.

Image of Trung Kien courtesy of Flickr



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