Bitcoin can reach $ 50,000 relatively quickly

Su Zhu: "Bitcoin can reach $ 50,000 relatively quickly"

Analysts predict bitcoin's price in the $ 4,800 - $ 6,000 range, but Three Arrows Capital CEO Su Zhu admits a rapid rise to $ 50,000.

In a post on Twitter, Su Zhu emphasized that in the current global economic situation, the flow of money into bitcoin can significantly increase, which means that the rate of the first cryptocurrency will grow strongly.

“In theory, this is the moment that all Bitcoin fans have been waiting for. Several emerging economies are on the brink of default. The US dollar has taken an inflationary path and it will be difficult to reverse this policy. If BTC holds the current levels, then it will be possible to reach $ 50,000 relatively quickly, ”said CEO of Three Arrows Capital.

However, not all Su Joo subscribers agree with him, especially considering the fall of the first cryptocurrency by 50%, which happened the other day:

“To get to $ 50,000 you need someone to buy for $ 20,000, $ 30,000 and beyond. I don’t know who will do such crazy things, because bitcoin can easily fall by 50% in a day ... You are too confident in talking about it, ”wrote a user under the pseudonym Comeenw.

After the recent drop in the cryptocurrency market, renowned analyst Piter Brandt expressed the opinion that the bitcoin rate could fall to $ 1,000. But Tone Vays believes that the price of $ 3,700 was the lowest point of the fall.

Philippines closed all financial markets due to coronavirus

Despite the fact that the government refers to the epidemiological situation, analysts are confident that other exchanges can follow suit.

The Philippine Stock Exchange closed indefinitely on Tuesday, with currency and bond trading suspended. This is the first time markets have stopped in the world amid the spread of a deadly virus. The authorities attributed their decision to concern for the health of traders.

Earlier, some other exchanges also closed trading floors or suspended trading due to a large-scale price collapse. However, the Philippines has gone further and implemented a complete ban, Reuters reported today.

Despite the fact that the Philippine government refers to the epidemiological situation, analysts are confident that other exchanges can follow suit.

"Given the unprecedented rate of decline in stock prices, stock exchanges may close in the near future, if the situation does not change," according to a report from analytical company Capital Economics.

Global markets are in free fall, which has already cut the combined wealth of shareholders by $ 14 trillion. Moreover, even traditional safe assets were unable to avoid falling because traders were selling gold to cover losses in other markets.

The head of the AdMacro research group, Patrick Perret-Green, assumed something similar over the weekend, that is, before the Philippines' decision became known. “We've seen this before. I think we'll see this time too. Governments just don't need additional problems and stress now. ”

The Philippine Trade Exchange said trading was suspended until further notice "to keep employees and traders safe" as part of the country's efforts to combat the epidemic.

Meanwhile, the country's finance minister Rosalia de Leon cited isolation as the reason for the suspension of trading in fixed income securities. Currency trading will resume on March 18.

In Malaysia, which is also introducing isolation from March 18, the securities regulator said that all capital markets will operate as usual.

CME Group Inc closed its Chicago trading floor last week to avoid crowds; Middle East exchanges have taken similar steps, although e-commerce remains available.

Landing platform BlockFi will increase interest on deposits in Bitcoin and Ethereum

BlockFi, a cryptocurrency lending company, has announced an increase in deposit interest rates in the two leading cryptocurrencies effective April 1.

Users with a balance of up to 5 BTC will receive an annual income of 6% instead of the current 3.6%. For Ethereum holders (up to 500 ETH), the rate will rise to 4.5% from 2-3.6%.

For deposits in stablecoins GUSD and USDC, no changes are envisaged - the previous 8.6% per annum.

“Our balance sheet is stronger than ever, and changes in institutional lending markets have created opportunities that expand our margins,” explained BlockFi CEO Prince Zach.

As bitcoin plunged to lows of $ 3,800 last week, the BlockFi team made the decision not to liquidate collateral for less than $ 4,500, he said. This move made it possible to preserve over 90% of the loan portfolio.

“The next few weeks are going to be interesting as we see if assets like gold and bitcoin detach from the stock market. During periods of severe panic, each asset is usually sold out. In 2008, after the passions subsided, gold rose very well. Let's see if bitcoin experiences a similar cycle, ”said Prince.