Bitcoin bull Max Keiser has set a six-figure price target for the highly backed cryptocurrency. Not just that, he expects Bitcoin to replace gold as a fool-proof asset that will remain that way for generations to come.
His recent tweet goes:
“I’m sensing #Bitcoin will cross $15,000 this week. Confidence in central governments, central banks, and centralized, fiat money is at a multi-decade low.”
Max Keiser’s $15,000 target might sound ambitious and biased but the same was said about the $13,000 mark predictions but it didn’t take long for bitcoin to cross that in the current market environment. Based on previous trends, the price could zoom to nearly $23,000 by the time the next bull cycle peaks. This makes Keiser’s $15,000 prediction look nothing to turn heads, however for this to happen within a week seems far fetched. But you can never say with Bitcoin.
Fiat vs Bitcoin
CCN’s Kiril Nikolaev pointed out that Bitcoin’s Bollinger bands are contracting and the daily trading numbers are getting narrower.
Nikolaev adds that the contraction of the bands along with the formation of a falling wedge bullish continuation pattern indicates that a surge in the bitcoin price could be in the cards. Technical analysis does back Keiser’s prediction is based on a different estimate.
His estimation is based on the fall of the general public’s confidence in central banks and governments that control fiat money. Federal Reserve’s interest rate cut also adds to the credibility of the theory. The Feds are attempting to increase the supply of the U.S. dollar as a means to achieve a lower interest rate. This, however, has reduced the value of the dollar and is the main reason why the price of bitcoin has been on the rise as investors are keen on finding a safer asset.
Bitcoin evangelist, Alan Silbert also backed this in his tweet:
“Interest rate down and further cuts coming. Lower rate = fewer reasons to hold USD. Buy #bitcoin”
As ambitious as Keisner’s claims sound the supply of bitcoin is limited and it cannot be manipulated by some central bank. These two facts alone places bitcoin in a very good place to hit the $15,000 mark within the coming weeks.