Investor Makes Strong Case for Bitcoin (BTC) to $52,000 as GFC Hedge
You may remember the excellent graph that investor Jacob Canfield, Managing Partner of trading website Signals Profits, put together a few months back that shows how Bitcoin moves in direct contradiction to news from CNBC?
Well, he’s back with another very ambitious Trading View graph and accompanying Youtube video showing in extensive detail how Bitcoin could likely hit $52,000 as a hedge in the event of another global financial crisis (GFC). Now, I’m no financial genius but personally, I think this guy knows what he’s talking about. As somebody who usually errs on the side of caution, I went into the analysis quite skeptical but came out relatively convinced. Canfield has an impressive 53,000 subscribers on his Youtube channel, “ILoveCrypto”, and a further 11,000 Twitter followers.
In the hour-long video, Canfield uses Fibonacci and RSI technical analysis tools to reveal how most of today’s major corporations, including Amazon, Apple, and Berkshire Hathaway, are all following a similar trend that rejected both Gold and Bitcoin. Combined with rising Government debt and interest rate hikes, he believes these events could trigger another financial crisis that would affect the Dow Jones and other stocks.
He goes on to outline where investment could come from to fuel Bitcoin to $52,000, considering the pending rate hikes from the federal reserve and the International Monetary Fund (IMF) warning of rising government debt. In the event of another financial collapse, which is highly overdue, it’s possible Bitcoin will be used as a store of value as Gold has been in the past.
“I think that Bitcoin will be the hedge because of the flight to Bitcoin we’ve seen with other countries (eg. Venezuela) that have destabilized and saw their currencies become completely worthless,” he explains.
Bakkt launch and other indicators
With the upcoming launch of the Intercontinental Exchange (ICE) Bakkt platform which will open avenues for massive, previously untapped institutional investment into Bitcoin, the idea certainly seems plausible.
The concept isn’t an entirely new one but it’s certainly the most in-depth analysis I’ve seen detailing the specific way in which such a scenario could unfold. Even Canfield himself points out that big names such as Arthur Hayes and Tim Draper have also predicted Bitcoin to hit levels of $50,000 or higher in the near future.
Canfield admits to not having an exact timeframe but estimates that initial events that would trigger such a scenario could begin to unfold in the next six to twelve months. If you have an hour or so spare it’s worth looking into his analysis on Trading View – even if, like me, you barely understand most of it.