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Bitcoin Expected to Hit $400,000 Thanks to a “Super Cycle”
Bitcoin Expected to Hit $400,000 Thanks to a “Super Cycle”
The crypto market will enter a super cycle as new money is injected through stablecoins.
Harry Yeh, founder and director of investment fund Quantum Fintech Group, said that the cryptocurrency market is entering a super cycle phase. Mr Harry said more printing activity and many stablecoin projects were set up as evidence of new capital inflows into the cryptocurrency market.
According to Bloomberg, Mr. Harry Yeh commented that stablecoins bring a lot of positive news, although it is currently a difficult period with the entire market correcting sharply. The opportunity for a crypto supercycle is here. Bitcoin Scenario Reaches Milestone $400,000 will appear.
Although there is no formal definition, a super cycle is a period in which the price of an item increases continuously over an extended period of time, often up to 10 years or more.
Stablecoins are cryptocurrencies created to minimize the impact of price fluctuations in the cryptocurrency market by being anchored to them U.S. dollar. Some prominent stablecoins widely adopted by many people can be mentioned as USDT issued by Tether company, TerraUSD (UST) by Terra Ecosystem or BUSD by Binance.
 Mr. Harry Yeh in a sharing session with Bloomberg. Photo: Bloomberg. |
Mr. Yeh believes that as stablecoins gain popularity and support, the crypto market will also be affected. The next phase of growth will be stronger than other cycles in the past.
The director of the Quantum fund believes that stablecoins have solved the liquidity problems and low transaction costs of Bitcoin or Ethereum. Stable money is gradually coming to life and becoming a payment method in everyday transactions.
“Cryptocurrency is still wild. I think we’re just halfway through the current bull cycle. In 2017 there were no stablecoin projects. We have many now. This is a sign that cryptocurrencies are being widely embraced by society. The signal for a super cycle is imminent,” shared Harry Yeh.
Bitcoin begins 2022 with a long slip towards the milestone 40,000 won U.S. dollar On January 9th, Mr Harry said the market would stabilize and rise again.
The founder of Quantum Fund has made a prediction 400,000 won U.S. dollar for Bitcoin, based on the macroeconomic situation such as the US Federal Reserve (Fed) decision to hike interest rates.
Despite rate hikes, the Fed continued to pump money into the market on a regular basis. According to Mr. Harry, bitcoin is still the choice of many investors to avoid inflation. Bitcoin is currently trading around 42,000 won U.S. dollar, almost 40% below the peak 68,000 won U.S. dollar Beginning of November 2021.
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Author: Annie
