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Wall Street Insider’s Prediction Has Investors Scrambling

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Jesse Powell, the CEO of the crypto exchange Kraken, is sure to be a bit of a Bitcoin bull. But he is predicting a very exciting future for Bitcoin that might challenge the minds of even hardcore Bitcoin fans.

During a Bloomberg interview, Powell claimed Bitcoin might get to $1 million within ten years, adding that backers of the currency believe it will eventually replace all major fiat money.

“I can only guess, but when I see it compared to US dollars, you have to wonder if it’s going to enormous levels,” he stated. “The real believers will say it is going to the moon and beyond to become the world’s top currency.”

High predictions are not new for crypto and Bitcoin especially, where investors are positioned to easily profit from influencing a larger group that crypto is heading “to the moon.”

Powell claimed Bitcoin believers see it exceeding the merged market cap of the dollar and euro.

The dollar “is just 50 years old and it’s showing signs of decay, and I believe people will being measuring price in terms of Bitcoin,” he said.

Bitcoin went down 3% in trading this Thursday, staying near $49,000. Since the beginning of 2020, prices have skyrocketed almost 600% thanks to larger mainstream usage, with bulls seeing it as an inflation hedge.

Critics say that Bitcoin is experiencing a stimulus-fueled bubble which will burst like the 2017 one did.

While the Kraken CEO did admit the possibility for wild volatility, saying prices can “go up or down by 50% on any day.” That type of instability has long been seen as one of the downsides of Bitcoin, putting the market into the area of speculation, rather than a means of exchanging money.

“If you are getting into Bitcoin, you should plan to stay in it for five years,” Powell said. “You must have strong belief to hold.”

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    Gold Price Reacts To Federal Announcements

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    The gold market did not get much love from Fed Chair Jerome Powell as he dismissed bond yields and increasing inflation pressures.

    Thursday, speaking to the WSJ Jobs Summit, Powell stated that while inflation is rising, he views it as transitory and a one-time thing. He went on to say that long-term interest expectations are well founded at 2%.

    Powell also dismissed the increase in bond yields and said that it does not signal that the Fed will raise interest rates anytime soon.

    Yields for 10-year Treasury have gone higher after Powell’s remarks, which are pushing gold prices under critical support near $1,700 per ounce. April gold futures last sold at $1,696.70 per ounce, down by 1% on the day.

    According to analysts, Powell’s statements on bond yields might continue to be bad for gold prices. He said it would take more than just a bond yield rise for the bank to adjust its policy. While the bond yield rise got his attention, he stated that monetary policy is not founded on just one number.

    “I would be worried with disorder in the economy or tightening. It’s not just about one price,” he said.

    According to some analysts, Powell did not give any new data on forward guidance regarding policy or outlook.

    He repeated his outlook that the Fed is far from its goal of reaching maximum employment and average inflation of over 2%.

    Looking at labor, Powell stated it would take more than just low unemployment to mean full employment.

    Although Powell was fast to dismiss increasing inflation, some analysts stress he is not in a rush to increase interest rates, which would give gold some support.

    Powell stated that he had two lessons from pandemic induced economic downturn that began last year: “When we have a genuine crisis, act fast and do not hold back and do not stop until the job is complete.”

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    Tesla Gets Owned By a Surprise Industry Favorite

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    Honda Motor (HMC) says that today it will launch the first vehicle with Level 3 semi-autonomous tech, which simply means it can drive itself under specific circumstances. 

    This feature is a part of Honda’s new Legend, an upscale sedan being sold in Japan. Regulators there have given approval to the system for sale. Honda wants to offer only 100 of these cars for now, which will cost 111 million yen, around $102,000.

    This is a test, but it is an important one that the industry will be watching. Automakers have so far hesitated to go beyond Level 2 systems because of worries over driver confusion and legal liability.

    A Level 2 system, like General Motors’ Super Cruise or Tesla’s Autopilot, can give drivers hands-free driving under certain circumstances, like when on a highway or freeway. But the driver must stay focused and ready to take over on a moment’s notice.

    The difference between these systems and the new Level 3 Honda is offering is a matter of degree. Honda’s system gives the driver more time to take over, meaning the driver need not be as alert. 

    How will it work on the road? We will soon find out. 

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    The Next ‘GameStop’ Is Here — See What It Is

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    A new ETF has hit the market, and it is not typical. The VanEck Vectors Social Sentiment ETF, trading as “BUZZ” on the NYSE is available as of Thursday. 

    BUZZ is getting a lot of news after Dave Portnoy promoted it on social media.

    The ETF will take the unique approach of using an algorithm to analyze 75 large-cap stocks that are being discussed the most on social media.

    So where does Dave Portnoy fit in?

    Although Portnoy is not a part of ETF, he is now partial owner into the company that made the algorithm and that licenses the strategy to the ETF.

    This fund is very different from your usual ETF. There are managed funds sure, but this one will constantly move positions to track trends of online discussions. And given the news about Reddit’s incredible power and influence during the GameStop short squeeze, investors might be very interested in such an automated strategy.

    The VanEck ETF is not investing as we are used to, that’s for sure. So it will be fun, interesting and hopefully profitable to see where this goes.

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    Bitcoin Bears Just Got Humiliated

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    The dollar index is giving off hints of a near-term top as the price of Bitcoin shows signs of a rally.

    There is a belief that the value of Bitcoin is linked to drops in the dollar.

    Since stores of wealth, like Bitcoin and gold are priced against the dollar, theoretically, a decrease in the dollar index would have a positive affect on Bitcoin’s price.

    As the dollar consolidated on March 3, Bitcoin went over $50,000, putting it on target to retest $51,600 resistance again.

    Higher than $51,600, resistance is low until $56,000. So going past this level is vital to securing upside trajectory in the near term.

    Bitcoin Jack, a well-known internet trader, who called the $3,600 low in March of 2020, stated:

    “Considering we will very likely see a large $1.9T stimulus within 2 weeks, my guess is the dollar will top out there.”

    If Bitcoin keeps increasing as the dollar stalls, it could let Bitcoin benefit from two trends.

    First, the dollar’s lowering will naturally benefit the digital asset. Second, the coming $1.9 trillion stimulus might serve as a spark for a larger Bitcoin rally while diluting the dollar.

    Bitcoin likely decreased this past week due to the uneasy economic environment, as the dollar started to go higher and bond yields increased to a yearly high.

    If these conditions were the major reason for BTC’s pullback, now that bond yields are pulling back, it could give Bitcoin good momentum in the next weeks.

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    Lawmakers Plan ‘Recurring’ Stimulus — See How Much You’ll Get

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    Americans might soon see more stimulus payments hit their banks as soon as mid-March. The reason? Lawmakers are pushing a $1.9 trillion covid relief bill. A vote will take place in the Senate, and lawmakers are anticipating to have the bill enacted by March 14.

    But now, some folks in Washington are claiming a single $1,400 stimulus isn’t enough. So they’re calling on President Biden to issue recurring stimulus checks until covid is completely over.

    Lawmakers are now pushing for a new system featuring recurring stimulus until the crisis is over rather than using one-off payments that must be voted on every time. 

    The goal of these recurring payments would be to give additional resources for struggling families, all the while pumping money into the economy to aid its recovery.

    This is not the first time the idea has been proposed.

    Back in January, over 50 House members requested that Biden support a plan for $2,000 monthly checks until covid is over. 

    The lawmakers did not say how much the recurring checks would be worth. Rather, they stressed the importance of giving those in need regular payments.

    But at the other end of things, there are lawmakers who think the current $1,400 stimulus is too much. 

    Many have expressed their concerns that upcoming payments are not targeted enough toward the country’s neediest.

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    Chaos Erupts After Zoom Releases Q4 Earnings

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    Zoom Video Communications shares went higher yesterday after better-than-expected Q4 earnings pushed analysts to increase their price targets, even as they showed concern about the company’s after-pandemic growth potential.

    The company reported Q4 adjusted earnings of $1.22 per share on revenue numbers of $882.5 million, which is a 369% surge year-over-year. While analysts were anticipating the company to announce earnings of 79 cents per share on a revenue number of $811.7 million.

    Keybanc’s Alex Kurtz said that Zoom had another great quarter, although he cautioned that investor focus will now be on how the company might support its own valuation.

    Piper Sandler with James Fish said in a note that it “is not over yet in communication software,” hinting at more possible upgrades later on. He increased his one-year target from $501 to $541 and kept his overweight rating.

    Morgan Stanley said Zoom’s earnings were “meaningful” and its positive outlook means it will increase estimates, though they remain skeptical of what it sees as “churn risk” in the second part of 2022. They raised their one-year target from $390 to $420 and kept their rating on the shares.

    Zoom Video shares were at $428.53, which is higher by 4.61%. The stock increased as much as 12% late Monday after the earnings numbers went public.

    That increase translated into a wealth gain of $2 billion for Zoom Video founder Eric Yuan, who owns nearly one-fifth of the company. Yuan’s net-worth is now at $22 billion.

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    Elon Musk Talks Up Precious Metal — But It Isn’t Gold Or Silver

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    Tesla CEO Elon Musk has been citing his anxiety over the lack of nickel available in the market. 

    BHP president Edward Haegel offered the option of Tesla using his company’s nickel supply, with about 70 percent of it already being used to create batteries worldwide.

    Musk Tweeted “Nickel is our top concern right now for increasing lithium-ion production. That’s why we’re changing our standard cars to iron cathode. There is plenty of iron and lithium out there!”.

    In July last year, Musk announced that a “giant long-term contract” would be given to any miner with the ability to provide nickel due to the high cost of batteries.

    Tesla manufacturing executive Drew Baglino told reporters that the company wanted to mine its own battery metals. 

    “We’re going to create our own cathode facility here in North America, leveraging all resources in North American for lithium and nickel,” Baglino said. 

    “Just that and localizing our cathode production and supply chain can lower the miles traveled by the materials we need by 80 percent, which is a large cost savings.

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    Apple Makes Major COVID Moves

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    Apple passed a milestone this week as the technology giant said that all of its 270 retail stores in the U.S. were now open again for the first time since Covid-19 began spreading.

    Shares of the company rose 4.1% to a price of $126.28 at last check during this writing. Apple shares fell 6.6% in the previous week as tech stocks went out of favor with Wall Street. 

    Apple closed all its stores starting in March of 2020 as covid infections began to rise. Since then, they have reopened and reclosed stores due to local pandemic conditions. Apple’s online store has of course been up continuously.

    Last week, retailer Target said it would add Apple shops inside more than 17 of its stores by the end of the fall. 

    Apple also beat South Korea’s Samsung as the world’s top smartphone seller in the fourth quarter.

    And last month, Apple was reportedly said to be negotiating buy sensors for self-driving cars. With the company working on their autonomous vehicle project for over three years. The sensors Apple is seeking to buy will enable their car’s computer to see its surroundings, the sources claimed. 

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    The US Dollar Just Got Replaced — See What With

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    Citi believes bitcoin is near a “tipping point” and might soon “become the currency of choice for trade” as companies like Paypal and Tesla warm to it and banks explore digital currencies.

    “There are many risks and problems that are in the way of Bitcoin’s progress,” the U.S. bank’s global perspectives team declared on Monday.

    “Its future is still known, but developments in the short term might prove decisive as the currency balances on a tipping point of mainstream adoption or speculative collapse.”

    This marks a change for major institutions on the digital currency. Many banks have shunned Bitcoin, saying it has no value and that the hype is like the tulip mania of hundreds of years ago.

    But bitcoin’s incredible climb over the past months has forced Wall Street power players to rethink cryptocurrency. BNY Mellon last month announced it would offer custody services for Bitcoin and other cryptos. Meanwhile, JPMorgan has also said it is looking at bitcoin.

    There are several hurdles bitcoin must overcome before reaching mainstream adoption, according to Citi.

    “Institutional investors entering the market has given more confidence in cryptocurrency but there remains issues that might limit widespread adoption,” Citi stated.

    “For larger investors, these include capital efficiency, custody, insurance and security,” the bank added. “Security issues with crypto do exist, but compared to traditional payments, it is more secure.”

    Just last month, JPMorgan analysts labeled Bitcoin a “side show” and said crypto was the “worst hedge” against large stock price downturns. The rise of demand for digital alternatives is the “real story of the Covid era,” they said.

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