Bitcoin Price Of $220,000 ‘Not So Crazy’

John Deaton, a lawyer known for his advocacy of XRP, has sparked significant attention in the crypto community with his recent comments on Bitcoin’s potential price surge. His statements, deeply rooted in current economic trends and crypto market dynamics, align with long-standing predictions by Bitcoin enthusiast Max Keiser.

John Deaton’s Perspective on Bitcoin’s Future

In a tweet responding to Bloomberg’s Lisa Abramowicz, Deaton outlined his views on a potential “perfect storm” for Bitcoin. He emphasized, “Although I believe a spot BTC ETF should’ve been approved long ago, the timing of its approval could create a perfect storm for Bitcoin.”

Deaton links the potential of rate cuts, increased liquidity, Bitcoin’s halving, and the approval of multiple spot ETFs as catalysts for a significant price increase, adding weight to Max Keiser’s prediction of $220,000 for Bitcoin.

He elaborated, “What Wall Street wants, Wall Street usually gets. And guess what Wall Street wants from the Fed? We all know no matter what happens, in the not too distant future (2nd-3rd Q), rate cuts and the printing of happen will happen,” adding, “Combined with rate cuts, increased liquidity, BTC’s halving, and 8-10 spot ETF approvals, Max Keiser’s $220,000 might not be so crazy 18 months from now.”

Max Keiser, a well-known figure in the Bitcoin space, has been vocal about his $220,000 BTC price target for a considerable time. His predictions are grounded in his analysis of global economic conditions and their impact on traditional currencies and Bitcoin. In a recent response, Keiser stated, “Rate cuts will boost Bitcoin to my $220,000 target for sure.”

Keiser’s rationale for this target price involves a comprehensive understanding of the BTC mechanics and global financial systems. He explained, “$220,000 in play, short term. Bitcoin price has lagged hash and will now catch up. Larry Fink is 50x bigger than Saylor.”

Further commenting on the global economic scenario, Keiser recently remarked, “What’s happening in the Middle East & Eurasia will crash the global fiat money, central bank Ponzi scheme. So the timing is now. $220,000 is a short term target. Bitcoin is immortal. You can’t stop it. Ponzi schemes are fragile and ALWAYS collapse.”

Highlighting the current state of the banking system, Keiser added a few months ago, “$200 trillion in bank assets are sitting in negative equity this weekend. 90% of global banks (weighted by market cap) are technically insolvent. The FED has to go back to NIRP (Negative Interest Rate Policy). This is how we get to $220,00 Bitcoin in the short term.”

Fed Rate Cuts Soon?

Wall Street’s growing anticipation of Federal Reserve rate cuts significantly influences the market sentiment surrounding Bitcoin price’s future. Lisa Abramowicz, in her Bloomberg article, highlights this shift in expectations.

She notes, “The Fed doesn’t want to talk about rate cuts, but Wall Street is sniffing out an increasing likelihood of just that.” This change in outlook is rooted in the economic indicators that suggest a potential need for the Fed to pivot towards a more accommodative policy.

Global Markets Strategist Ben Laidler from eToro captures this sentiment succinctly, “Six months ago, if the economy had fallen off the cliff, the Fed’s hands were tied. It couldn’t cut rates. Now it can.” His statement reflects a growing belief among investors that the Fed might soon reverse its policy in response to economic conditions.

Contrasting this, Minneapolis Fed President Neel Kashkari remains skeptical about the immediate likelihood of rate cuts. His stance adds a note of caution to the optimistic forecasts, highlighting the unpredictable nature of monetary policy. Nevertheless, Wall Street and the market think otherwise.

At press time, BTC traded at $35,310.

Featured image from CryptoLaw / YouTube, chart from TradingView.com