Bitcoin to hit $20k this year; gold, silver as hedge against inevitable currencies collapse – Celsius Network CEO

By June 5, 2020Bitcoin Business
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Bitcoin prices are set to test new all-time highs this year due to structural changes in the cryptocurrency, as well as an overall supportive macroeconomic environment, says Alex Mashinsky, CEO of Celsius Network.

“We are going to kiss $10,000 several times. Even if we break through it, there will another resistance level at $12,000 and $14,000. For us to make new highs by the end of this year, which I’m still predicting, we will need to basically break those two levels with a lot of conviction,” Mashinsky told Kitco News.

One of the reasons for bitcoin’s price rally is the halvening that just took place, which cut supply, he said.

“At the same time, what we’ve seen is a dramatic increase in the number of new people signing up, first time users opening accounts and buying at least one bitcoin,” he said.

Bitcoin has seen a close correlation with equities prices this year.

“There should be a decoupling there, if you look at any kind of logic. Because the same people trade stocks and trade bitcoin, the animal spirits behave in the same way,” he said. “The problem that the cryptocurrency has is that it does not have enough hodlers and it has too many speculators, so that’s why you have a very high correlation.”

On the economy, quantitative easing has amounted to record global debt levels and rising equities markets, with the latter representing a disconnect between reality and prices.

“The Fed is achieving its goal. People that hold assets are achieving their goal, but 40 million Americans are unemployed, and the U.S. economy is definitely not achieving its goal, so that disconnect is telling us that the stock market is attached to the Fed,” he said.

Mashinsky’s comments come as the European Central Bank issued another 600 billion euros to the Pandemic Emergency Purchase Program, bringing the total stimulus thus far to 1.35 trillion euros.

Down the line, insurmountable debt levels will create problems for currencies around the world, Mashinsky noted.

“I think what’s going to happen is the fiat domino effect, many, many countries’ fiat currencies toppling, like we’ve seen in Venezuela and Lebanon and Turkey and Argentina and so on. You’re going to have many, many more countries like this topple. And all those countries are going to have to default on their dollar-denominated debt, like Brazil, for example. All of that is going to come back to roost,” he said. “That’s when everyone is going to be looking for the exit; selling their dollar-denominated assets and trying to buy the few non-dollar denominated asset like gold, silver, or bitcoin.”

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