Joe Biden and Kamala Harris have been declared the victors in the US election, but the biggest winners to emerge from the bitterly fought contest are China and bitcoin investors, according to crypto analyst Max Keiser.
The host of RT’s Keiser Report said the change in government “will trigger a stampede into bitcoin as the global wealthy attempt to escape.”
Keiser, who has been imploring his viewers to invest in bitcoin since it was $1, believes the leading crypto asset will soar to a dizzying $400,000, about 20 times its December 2017 all-time high.
While he did not specify exactly when it will reach that astronomical price target, he is confident that it will hit $28,000 by January 20, the day of the inauguration.
He believes the Biden administration will take a weak stance on China, fueling its rise as a global power, and, like the Trump administration is currently doing, debase the US dollar through relentless money-printing aimed at addressing the economic impact of the Covid-19 pandemic.
Noting that the legitimacy of the outcome of the November 3 election has been contested by the Trump campaign, Keiser tweeted on November 6: “A Biden win* will lock China’s global supremacy, crash the US dollar, send Bitcoin to $400,000.
“This is because $100,000,000,000 in global managed funds will start allocating into Bitcoin to escape.
“Expect Bitcoin well above $28k by Inauguration Day.”
Apparently triggered by Biden’s post-election speech, Keiser later tweeted: “As he gets closer to WH the panic-buying of BTC from smart-money will ratchet up exponentially. His plan is: – Immediately print $30 trillion or more – Throw the keys to Wall St who’ll do another 2008 and rob us blind.”
Keiser’s $400,000 price prediction may seem wildly implausible to some, but it is in the same ballpark as those of other respected crypto analysts, including Silicon Valley tech guru Tim Draper, who believes it will be at least $250,000 by early 2023. Draper previously predicted that bitcoin would reach $10,000 by the end of 2017, which was considered ridiculously optimistic at the time but turned out to be quite conservative.
Even more optimistic than Keiser and Draper is Real Vision founder Raoul Pal. The former Goldman Sachs hedge-fund manager believes it will reach $1 million due to an “enormous wall of money” entering the market.
A growing influx of corporate money, which began with MicroStrategy shifting its US dollar treasury into the asset earlier this year, is expected to drive the price up regardless of whether the retail side of the market gets another case of crypto fever, as it famously did in 2017.
Corporate players are currently purchasing more bitcoins than miners are producing, which means a looming supply crunch will put upward pressure on the price, according to analysts.
In an interview with CNBC, Wall Street investment legend Bill Miller explained, “The bitcoin story is very easy, it’s supply-demand. It’s economics not 101 but .01 which is bitcoin’s supply is growing around 2.5% a year, and the demand is growing faster than that, and there’s going to be a fixed number of them.”
He added, “If you don’t have exposure to bitcoin, I would strongly recommend that that you do that at current prices.”
Price already soaring
The price of bitcoin has been rising dramatically recently, signaling what observers believe is the start of a massive bull run that could last for 12-18 months.
At the time of publication (11.55 pm in Hong Kong), the price of bitcoin was $15,331, according to CoinMarketCap, up $4,850 since October 1 and $10,170 since the pandemic-triggered crash in March.
When President Donald Trump was elected in 2016, the price of bitcoin was a comparatively paltry $701.