2017 BIG MOVES IN BITCOIN – 40% Move Higher Over 1 Month & 30% Drop Over 2 Days

Sharing is Caring!

The price of Bitcoin could hit more than $2,000 in 2017 driven by expectations that U.S. President-elect Donald Trump may introduce economic stimulus policies, which could send inflation soaring and propel the dollar to record highs, a report from Saxo Bank claims.
Bitcoin is currently trading around $754.51, according to CoinDesk data. A handle of over $2,000 would represent 165 percent appreciation.
During his election campaign Trump has talked about an increase in fiscal spending. Saxo Bank’s note said that this could increase the roughly $20 trillion of U.S. national debt and triple the current budget deficit from approximately $600 billion to $1.2-1.8 trillion, or some 6-10 percent of the country’s current $18.6 trillion economy.
As a result, the economy will grow and inflation will “sky rocket”, forcing the U.S. Federal Reserve to hike interest rates at a faster pace and causing the U.S. dollar “to hit the moon”.
When inflation rises the Federal Reserve may raise interest rates to bring it under control. This causes the dollar to appreciate because it would be seen as an attractive currency for foreign investors.
“This creates a domino effect in emerging markets and China in particular, leading people globally to look for alternative forms of currencies and payment systems not tied to central banks that have exhausted monetary policies or crony governments that are in full financial repression mode nor transaction systems that are long overdue for a revolution,” Steen Jakobsen, chief economist at Saxo Bank, wrote in a note.
Bitcoin as the largest cryptocurrency would benefit from this “chaos”, he added, as emerging market countries look to move away from “being tied” to the monetary policy of the U.S. and banking system.
Benoit Tessier | Reuters
“If the banking system as well as sovereigns such as Russia and China move to accept Bitcoin as a partial alternative to the USD and the traditional banking and payment system, then we could see Bitcoin easily triple over the next year going from the current $700 level to +$2,100 as the blockchain’s decentralized system, an inability to dilute the finite supply of bitcoins as well as low to no transaction costs gains more traction and acceptance globally,” Jakobsen said.
Blockchain is the underlying technology of bitcoin which records every transaction using the digital currency so that it can’t be tampered with. There is also a finite supply of 21 million bitcoins. This in theory would cause price appreciation of the asset over a long period of time. Bitcoin Cryptocurrency Currency USD Dollar “U.S. Dollar” Price Inflation USA America “United States” Trump Economy “Interest Rate” Banking Savings “Savings Account” Trade Trading “Forex Trading” Forex “Bank Account” Profit Tax Campaign “Make Money” “Bitcoin Trading” “Sell Gold” Gold Silver Litecoin Secure Wealth Wealthy Elite Interest “Gold Coin” 2017 2018 Investment “emerging markets” GBP CNY JPY EUR “accept card payments” “accept bitcoin” millionaire business “elite nwo agenda” jim rogers marc faber david icke coast to coast singapore With the U.S. economy poised to accelerate under a Donald Trump administration, it’s going to become increasingly important to track three monetary metrics: long-term interest rates, the dollar’s value and inflation, Jim Cramer said during his Mad Money program’s “Off the Charts” segment.
To get a handle on those, Cramer turned for insight to Robert Moreno, a colleague at RealMoney.com, as well as being the publisher of RightViewTrading.com.
Take interest rates first. For about the last two decades 20-year Treasury bond yields have been declining (and, conversely, prices rising). That’s the result of an anemic economy and an accommodative Federal Reserve. Lately, though, those yields have been rising, thanks to the expectation that the Fed will raise interest rates this month — and the Trump administration’s expected fiscal stimulus. At the very least, Trump wants to borrow lots of money, and that’s going to hike the interest the government pays on Treasurys.
Jakobsen’s comments were in his annual “Outrageous Predictions” note and the economist says that his views are not the official outlook for Saxo Bank. Instead they are an attempt to “get you to think out of the box” with the aim of “provoking conversation”
Bitcoin rise realistic
Bobby Lee, chief executive at bitcoin exchange BTC China, compared the current situation of cryptocurrencies to the advent of digital cameras. He said that it is a “new asset class” with long-term potential.
“It’s the advent of digital currency and with bitcoin there is bound to be more in circulation value in the coming years,” Lee told by phone. The amount of bitcoin in circulation is valued at around $12.1 billion

See also  China Making Serious Moves Against Taiwan!
See also  Is Gold About To Rip Higher?

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.