Daily Trending News and Market Sentiment: $500,000 Bitcoin, Tether Defends McCormack

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It has not been a kind Sunday at all for Bitcoin so far, with Asian profit taking or liquidation of long positions leading to further sell offs for the world’s favorite crypto, taking price to further daily lows of USD 8,719 (CoinDesk).

Of course, the positive angle is that it could have been far worse, and bears are somehow still not able to pull price to USD 8,500 despite some effort, so it could be said that stubborn support is still holding.

The stranger thing to observe is that altcoins are having a good weekend despite bearish signs for Bitcoin, so we are witnessing very strong growths relatively speaking from major coins like ETH (0.86%) and EOS (1.43%) but also stronger currents of positivism from the smaller yet solid altcoins like LTC (2.73%), Monero/XMR (2.01%) and even Stellar Lumens/XLM (5.07%).

A few analysts have been talking about the alt spring for some weeks now, but signs have yet to been confirmed so if this trend continues for a while more, it could be further proof that the long-awaited alt season has finally arrived once more. Altcoin bag holders will certainly be praying the end of 2019 brings them that good news!

But on to sentiment affecting news! First, let’s start with a familiar face in the shape of BTCC founder Bobby Lee, who has promised that the Bitcoin flippening against gold will result in a half million dollar Bitcoin in only nine years’ time.

Lee has chosen to enter the ongoing debate between gold and Bitcoin, and has chosen the USD 500,000 price prediction by 2028 to mark his entrance. A decade later, with all fiat printing even more and Bitcoin scarcity being even greater, he believes we’ll be seeing BTC at 1 million US dollars.

He takes a standpoint from market capitalization, where Bitcoin’s USD 160 billion is 50 times lower than that of gold, which stands at USD 8 trillion. Lee then goes down the scarcity argument, saying that Bitcoin’s success is derived from its block reward halvings, with three halving events to occur over the next decade. He then notes:

“By 20th year, daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than #gold!”

Also in tune with Lee’s arguments is the Stock-to-Flow model charting now making its appearance on social media a lot. Popularized by crypto influencer PlanB, the chart also measures up Bitcoin new supply versus existing supply to make a prediction of future value. This model sees a USD value of only USD 8,300 at the May 2020 estimated date of halving. But this quickly changes, with the next halving in 2020 calculating a massive 6-digit price of USD 100,000.

Lee wants to sing the tune of PlanB, and says a million dollars is the right projection, but PlanB notes that money printing could end up nullifying the Stock-to-Flow model:

“I would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ … who knows what happens with $ if the FED keeps doing more QE (money printing).”

Let’s see how accurate this model will be in seven months’ time, first!

Meanwhile, let’s put Tether back into the spotlight, this time with the stablecoin issuer putting its full backing behind crypto podcast host Peter McCormack, who is defending himself in a lawsuit against Craig Wright, the man claiming himself to be the creator of Bitcoin.

General counsel for Tether, and also for sister company and crypto exchange Bitfinex, Stuart Hoegner, publicly announced their backing, saying that Tether refutes Wright’s claims in this regard. He said:

“Wright has had myriad opportunities to prove that he is Satoshi and has not definitively done so.”

Hoegner, who has been very vocal also in defending Tether against other claims that accuse the stablecoin of being complicit in Bitcoin price manipulation during the 2017 bull run, now says that Tether “stands behind” McCormack in his ongoing litigation.

It seems to also suggest that this goes beyond moral support, although Tether is notoriously vague on what it is actually offering:

“Litigation can be drawn-out and expensive, but we are committed to the long game. We admire Peter’s conviction and are humbled to support his defense against what we see as frivolous and vexatious litigation.”

As we have reported earlier, Wright has now pulled out of a settlement with the Estate of Dave Kleiman, after having been in a years-long legal battle over 1 million bitcoins that Kleiman and Wright mined during the early days of Bitcoin.

 

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