After United States President Donald Trump first mooted a $1 trillion stimulus package for the U.S. economy in the wake of the coronavirus outbreak, people were shocked at what seemed like a gargantuan amount.
As Cointelegraph reported a few days later on March 25, a bipartisan deal has been agreed for twice that figure and it suddenly seems far more tangible. Binance CEO Changpeng Zhao even tweeted that the new financial dialogue meant a $2 trillion market cap for Bitcoin could be considered “modest”.
Will a devaluing U.S. Dollar push Bitcoin to $100K?
The Federal Reserve and central banks around the world have started churning out fiat money in an attempt to prevent a deeper COVID-19-driven financial crash through quantitative easing.
Trillions are on the table, and Bitcoin has already seen price gains following the Fed’s suggestion that it could print an infinite amount of cash. According to Zhao, Bitcoin ride this wave all the way to $100,000:
“As we get used to talk about Trillions, a modest $2 trillion market cap of #bitcoin will put 1 BTC at $100,000. Not such a hard to imagine number now, right?”
Bitcoin price appreciation boosted by HODLers
Zhao went on to explain that, because most Bitcoin is in the hands of HODLers and not for sale, only a small percentage of the $2 trillion U.S. stimulus package would need to flow into Bitcoin in order to achieve an equivalent market cap.
Of course, Zhao’s bullishness for Bitcoin is swiftly becoming a meme, and many of his Twitter followers responded that such a prediction could only be a sell signal. However, with more dollars being printed by the day, Bitcoin’s limited supply may well be in its favor.