Cryptocurrency Market Update: Massive Bitcoin boost if gold ownership is illegalized

Bitcoin could potentially gain ground on Wall Street according to a picture painted by the head of London-based Odey Asset Management firm, Crispin Odey. In an open letter directed to the firm’s investors, Crispin warns that central banks around the world could decide to outlaw private ownership of gold as a way of controlling inflation amid the COVID-19 pandemic.

The move is not new because according to Odey, the United States Federal Reserve enacted the measure in the 1930s. By so doing, the government forcefully possessed the precious metal from the public at a cost in order to revalue the US dollar.

Inflation is likely to spike between 5% and 15% in the next 15 months. Odey says that high inflation levels would greatly affect long term maturing bonds as well as the growth in the stock market. More stimulus packages to citizens are expected as the virus continues to spread across the world.

Odey also said that the only beneficiaries of the inflation would be Bitcoin and gold and this is the reason investors are still buying more gold. However, Bitcoin is set to be the survivor of the harsh economic times as it’s unlikely to face confiscation. Odey advised investors to consider other safe-haven alternatives from gold as its ownership could be outlawed.

Read also: Cryptocurrency Market News: Bitcoin recovery from $9,500 still eyes $10,000

Bitcoin price update

Bitcoin continues to face the wrath of the sellers as though it is a punishment for not being able to overcome the resistance at $10,000. On Wednesday, the price tested the support at $9,250. Recovery from this recent low became unstainable above $9,500, warranting an ongoing retreat. At the moment, Bitcoin is trading at $9,353 after losing 1.65% from $9,512 (opening value).

Other major cryptocurrencies such as Ethereum and Ripple have also embarked on painful gains trimming exercise. For instance, Ethereum is trading at $206 from $209.88 (opening value) while Ripple is exchanging hands at $0.1987 after a correction from $0.2029 (intraday high).

Chart of the day: BTC/USD daily