Bitcoin (BTC) could soon shoot to $20,000 as a result of emergency measures from the United States Federal Reserve, also known as The Fed, one of the industry’s biggest firms has said.
Fed echoes 2008 crisis moves
In a tweet on Sept. 18, Arthur Hayes, CEO of derivatives giant BitMEX, forecast that fresh quantitative easing (QE) would further decrease faith in fiat currency.
The comments come a day after the Fed swooped to decrease interest rates on some loans which reached more than 10%, or four times its target. More than $53 billion was pumped into the economy.
“QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000,” Hayes wrote.
The Fed’s QE injection marked its first emergency intervention since the end of the 2008 financial crisis, an event directly leading to Bitcoin’s creation.
While the cryptocurrency has yet to see a global crisis of the same scale, markets have shown that Bitcoin price benefits from political and economic uncertainty.
Hayes doubles down on Bitcoin price
Not just the Fed, meanwhile, but also the European Central Bank (ECB) is following the QE trend once more this year.
Completing its latest move last week, commentators believe markets want the ECB to continue the same behavior, giving rise to the “QE4eva” phenomenon described by Hayes.