In a scenario where the world is crippled by the deadly effects of the Coronavirus, Arthur Hayes, CEO, and co-founder of global cryptocurrency exchange BitMEX has taken its stand from a crypto point of view. Arthur is of the opinion that the actions of Central Banks could boost the value of Bitcoin to more than $20K by the end of this year.
In today’s publication of the ‘BitMEX Crypto Trader Digest, Arthur talked about how Central Banks could turn around the global economy and why enthusiasts should grab as much crypto as possible in the coming months. Arthur said, “They are almost out of bullets. They only have 100bps of room left before rates hit zero. They can obviously take rates negative, but as we have seen with various other central banks it is not very effective. If a twin demand and supply shock affect the global economy, then rate cuts can do nothing to staunch an economic bloodletting. Once they are done, rates will go to zero everywhere.”
There is already a distress call in the market amidst sentiments around the COVID-19. Having said that, Hayes also acknowledged the fact that Bitcoin is not at all shielded from the crisis that the global economy is going through. He remarked that BTC could hit as low as $6K initially, but will eventually rise up to $20K by the end of 2020.
Bitcoin hit its all-time low of 2020 at $6188 today at press time. According to various price prediction matrices, the crypto market is currently being dominated by “extreme fear”. At this time, Arthur Hayes’ comments have definitely come across as a bright spot.