New Bitcoin Boom Because Of Central Banks?

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Although the new all-time-high of Ethereum is the real news for the crypto-world, the fact that Bitcoin is so much more known ensures it makes all the headlines still.

As such, there is now hinting in the MSM (Mainstream Media) that the current climb seen in the past two months is a bubble. The fact that Satoshi Nakamoto’s invention was able to start February at just above $36,000, only some $5,000 beneath the all-time peak it hit last month, clearly has classic finance worried that 2021 might become Bitcoin’s year.

With Elon Musk being outed as a fan, there are good tidings for the cryptosphere.

• Discover where to buy Bitcoin.

Altcoins getting institutional investment as well

There is a remarkable turn going on though. In fact, classic media (CNBC, CNN, New York Times, Wall Street Journal, BBC News, etc) by now agrees with the point that hedge fund manager Paul Tudor Jones made in May of last year when he was one of the first to advise a Bitcoin investment as a hedge against inflation.

Bank of England says banks will need six months to prepare to have fun staying poor pic.twitter.com/yOdcYZltni

— Ben Kaufman (@_benkaufman) February 4, 2021

Although the majority of safe haven money still flows to gold, Bitcoin is becoming a viable alternative.

The amount of liquidity that has been injected in the system has found its way into a lot of different assets, including alternatives such as bitcoin.

Admitted Francesca Fornasari, a fund manager at Insight Investment.

In fact, the longer than foreseen lockdowns in Europe and a slow roll out of vaccines in the US will probably mean that central banks will resort to even more money printing (in case of the US) or bond buying (in case of Europe) than initially foreseen.

⁦@JeffBooth⁩ The power of sound money 😍 pic.twitter.com/b7YKHfhNx2

— Michael Davis (@KingDavie24) February 5, 2021

This will water down the value of their respective currencies, and could thus result in an influx of more money into the cryptosphere.

Canadian insurance company Manulife affirmed that the actions of Central Bankers would turn crypto into:

A solution to investor fears that ongoing extraordinary policy support could lead to resource misallocation. This doesn’t necessarily imply that investments in cryptocurrencies are appropriate, but it does suggest that cryptoassets such as bitcoin will increasingly become a standard point of reference for investors and policymakers alike.

The trend is clearly in crypto’s favor, with the total market value of all cryptocurrencies above 1 trillion dollars for the first time earlier in January.

Of course one has to take into account the weakness of the dollar when measuring this.

Chicago Mercantile Exchange

Mainstream Media has also discovered Ethereum as of late. The coin developed by Vitalik Buterin is setting new records as institutional investors are eager to buy it before the launch of Ethereum futures on the Chicago Mercantile Exchange next week.

• Discover where to buy Ethereum.

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