• Add
    Company

Bitcoin to $20,000; Japan pumps the yen

Swissquote Bank

Bitcoin targets $20,000

By Arnaud Masset

Sunday’s introduction of futures on Bitcoin was to trigger a sharp correction – thought many pundits – but it did the opposite. Prices soared more than 20% above US$17,000. As it turns out, interest in Bitcoin futures is limited. Trading at first was around 300 Bitcoins per hour, but this quickly declined to around 50 as the futures’ price exploded as high as $18,850.

Shorting Bitcoin is less popular than was expected. The cryptocurrency is currently going through a period of accumulation at around $16,000-$17,000. The price will pick-up soon, as money continues to surge into cryptos. $20,000 is a reasonable target for year-end.

Japan’s yen for inflation

By Yann Quelenn

Japan wants a weak yet, so that it can inflate away its enormous national debt. If the Bank of Japan even hinted at normalising its zero-to-negative interest rates, the yen would spike – and reverse that hoped-for inflation. Prime Minister Shinzo Abe recently gave inflation a push, declaring that wages increase 3%. The government will cheer, every time the US Federal Reserve hikes rates.

Even so, the USD/JPY has been strengthening since the end of November and is now down to 114 yen per dollar. So the BoJ will stay in ‘dove mode’ until inflation is dead. This might take years, even decades!

Swissquote Bank Review

Source: https://en.swissquote.com/fx/news
Disclaimer
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}