Search ForexCrunch
  • The Coronavirus stimulus package by the US Fed and Treasury could be key factors towards Bitcoin surge to $2 million.
  • As long as people, commercial banks and institutions fear devaluation of currency, Bitcoin is the ultimate winner.

Bitcoin is in total lockdown under $7,000 after recovery from the recent low at $6,575 stalled marginally above $6,900. The recovery comes after Bitcoin retreated from highs above $7,500. Although the drab price action below $7,000 raises questions whether a pre-halving pump is possible, Dan Held, the business development manager at Kraken exchange says that this just the beginning of a massive long-term rally.

Held was speaking in a YouTube Interview with Lark Davis where he discussed why he thinks Bitcoin is on verge of a major bull run that could hit $2 million per BTC in the next few years. He started by saying that Bitcoin has maturely reacted to the COVID-19 pandemic, at the same time, it did not need any external interventions to so. Held said that with halving around the corner and a “huge backdrop where banks are literally printing a million dollars a second, which happened a few weeks ago with the US, the Fed and the Treasury,” it is the right moment for Bitcoin to show its prowess.

The cryptocurrency industry, according to Held has grown incredibly over the years. The number of investors holding BTC has also increased significantly. Moreover, mainstream coverage has shot up especially on CNBC. Explaining the “supercycle” where Bitcoin is likely to hit highs above $81,000 to $300,000, Held stated:

 We’re seeing a scenario where there’s a literal infinite amount of fiat that will be printed, and there’s only 21 million Bitcoin. It’s hard to predict, but long-term, maybe late 2021, is when a lot of the models predict what we might see in historical cycles. The classic models show us at $80,000 to $300,000 per Bitcoin. We could see that. We could see something a little crazier. I call this the Bitcoin supercycle.

As central banks continue with the printing of money, people are bound to seek alternative assets and according to Held, Bitcoin is this alternative asset. He believes that as long as everyone fears devaluation of currencies, “then Bitcoin’s not going to stop at $100,000 or $300,000. It could go up to a million or two.”

Bitcoin price update

At the time of writing, Bitcoin is trading at $6,860 amid a strongly growing bearish grip. Movement above $6,900 has become unsustainable and the past of least resistance is now to the south. Support at $6,800 must hold if the bulls are to avert losses towards $6,000.

BTC/USD 4-hour chart

BTC/USD price chart