$10,000 Bitcoin Value Reachable with the Billions in Fiat Currency One CEO Says is “Already Onboarded to Crypto”

In 2018, the crypto industry saw the exit of millions and potentially billions of dollars, as various projects dumped their crypto earnings from ICOs and replaced them with fiat currency. Even the everyday investors ended up liquidating their funds, hoping to save themselves from crypto destruction.

At the same time, there are plenty of people who say that there is little or no fiat in the industry, leaving sell-offs as the only option to bring in revenue. However, there is one investor – Su Zhu – that believes that buying pressure is relaxed and that there’s still billions of dollars in fiat currency that is ready to pour into Bitcoin.

Zhu, the CEO of Three Arrows Capital, posted on Twitter to encourage investors to be optimistic about the current crypto market. He posted,

Though there is no exact forecast from Zhu about when this money would reach the physical crypto market, his bullish tone remained confident.

In a report by NewsBTC, the writer admits that most people do not see the same math behind Zhu’s statements. However, fiat amplifiers must also be considered. A recent NewsBTC report stated that

“due to the shallow order books (low liquidity) that are a byproduct of nascent markets, U.S. dollars that enter this market have often had an amplified effect on the value of digital assets.”

The ecosystem has been maturing in many ways, but fiat amplifiers still have a role to place. Alex Kruger, a markets researcher for cryptocurrency,” recently performed research that reviewed a 117.5 fiat amplifier exists right now.

With $2 billion in net inflow, the market cap of Bitcoin went from $15 billion to $250 billion, but the story is not that simple. While Citigroup has estimated an amplifier of 50, Placeholder Ventures’ Chris Burniske believes the true number is being 2 and 25.

Realistically, considering how difficult it would be to find an accurate reading of the amplifier, the generally agreed consensus is that each dollar into the industry impacts crypto “disproportionately to their nominal value,” says NewsBTC.

With a low-end 10x amplifier, the amount that Zhu believes is waiting would essentially drive the value of the market cap of all BTC up by $65 billion, which would make 1 BTC worth nearly $8,000. Even though the target that Zhu has hoped for was closer to $10,000, these are all estimates.

If Bitcoin were to finally reach $10,000, many crypto investors would be relieved, to say the least, especially considering the unfortunate results of 2018’s crypto market. However, there are many proponents and opponents that believe there is still many changes to happen in the market this year.

In a Bitwise Asset Management Survey, only 55% of the investment advisors in that participated saw an appreciation in value in the next five years for bitcoin, though the average prediction was around $17,570. Tom Lee, who works at Fundstrat Global Advisors as the head of research, has suggested a $25,000 price point as a “fair” idea of where Bitcoin is headed soon.

Some experts seem to think that the sky is the limit, as Bitcoin billionaire Tim Draper projects a $250,000 price tag for Bitcoins by 2022, and crypto researcher Filb Filb says that $333,000 is coming.


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