Bitcoin evangelist Max Keiser says the top crypto is on the verge of a severe supply crunch that will suddenly trigger a series of dramatic price rises.
In an interview with the Rice Report, the Orange Pill Podcast and Keiser Report host, who has been imploring his viewers to buy bitcoin since it was $1, explains, “Over the last couple of years, we’re transitioning from fake volume to real volume and that’s kind of like churning through an overhead or a supply of volume to create the price discovery.
“Pretty soon what I think is going to happen is that the Michael Saylor [CEO of MicroStrategy] type or a corporate type or an institution will come in with an order to buy $10 billion to $20 billion worth of bitcoin and suddenly within a few trades, they’re going to be discovering there’s no supply at all and then suddenly the price will gap from $37,000 to $47,000 to $52,000. It could happen in 10 minutes because the markets kind of lulled people into a sense that there is supply out there.”
He continues, “It’s churning through all that bullshit supply and then once that’s all gone, the institutions are going to be in for a rude awakening because they won’t be able to source any coins at any price until it gets a lot higher. So I think the next break is going to be a gap. It should suddenly gap higher and then that’ll be a big story.”
Keiser believes bitcoin will be widely adopted in the future because people will be desperate for a store of value that is not being debased by relentless central bank money printing. Those that choose the bitcoin escape hatch, he says, will be markedly better off than those that don’t.
“As central banks continue to erode and the problem continues to get worse and there’s no new solutions or thinking just to continue doing the same broken thing, you’re going to see bitcoin gallop higher, which isn’t going to attract more capital and you’re just going to have this bifurcated global economy. There’s going to be a bitcoin economy in a bitcoin world and a bitcoin life and people living the bitcoin life and there will be everybody else.”
In a Monday tweet, Keiser expanded on this prediction, saying bitcoin adoption has serious implications for government revenue generation: “Corporations, hedge funds, univ. endowments who buy #Bitcoin are quietly seceding from political control. The trickle becomes a flood and any ability to fund the government will cease. Mad money printing to replace the capital flight to BTC will accelerate the flight to BTC.”