Even after 50% crash, Bitcoin is primed to see explosive growth: 5 reasons why

Bitcoin’s performance over the past few weeks since the mid-March bottom has undoubtedly been impressive. The cryptocurrency, after all, is up nearly 100 percent from the $3,700 lows, a performance that only companies that got supported by the U.S. government, like Boeing, have been able to match.

Even still, the rally isn’t done yet.

8 months ago, BTC surged to almost $14K when Libra was announced. Libra is now closer to reality and DCEP is almost live. India, Korea and Germany have approved crypto. QE infinity is here plus BTC halving is <30D away. Yet BTC is half where it was. Can’t ask for a better setup. https://t.co/kcjRsK8neP

— SpartanBlack (@SpartanBlack_1) April 17, 2020

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Kelvin Koh — a partner at crypto fund The Spartan Group and a former partner at Goldman Sachs — remarked in a recent tweet that he thinks you couldn’t ask for a more bullish Bitcoin setup, citing five fundamental news stories that could catalyst a large crypto rally.

They are as follows.

Bitcoin’s best bull case ever in five stories:

• Libra is edging towards a launch: Revealed last week by the Libra Association, the consortium behind the Facebook-led blockchain project Libra, the crypto-asset(s) is moving one step closer to launch with a new whitepaper and ongoing technical development. Koh explained that as Bitcoin seemingly rallied to $14,000 in 2019 on the Libra news alone, a full-blown launch of the project could do even more to boost demand for BTC.
• China’s digital currency is arriving at long last: Multiple sources have confirmed that China is starting to test its central bank digital currency project after years of development. There’s some even saying that it could be used for the 2022 Olympics in Beijing. Some say that it launching could help accelerate the shift from traditional payment rails to digital systems, Bitcoin included.
• Countries have legalized crypto: The past few months have seen some of the world’s most economically-important nations such as India, South Korea, and Germany signal support for crypto. India, for instance, affirmed to banks that they are allowed to service clients that deal in Bitcoin and cryptocurrency, which may spark a renaissance of crypto demand.
• The Federal Reserve is injecting unlimited liquidity into markets: Announced last month, the Federal Reserve will purchase any amount of bonds to  “support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.” It’s a pledge to do anything to support the economy and markets that analysts say will prove the demand for a scarce asset like BTC.
• Bitcoin’s halving is just three weeks away: According to estimates, Bitcoin’s block reward halving is a mere 20 days away, which will result in BTC’s inflation following below that of the target rate of fiat currencies, 2%. Earlier this year, Koh and the team at Spartan Group said that the halving alone could push the cryptocurrency to $40,000.

Far from the only factors

There are other factors aside from the five fundamental stories Koh laid out that will likely act as a boon to Bitcoin moving forward.

For one, data suggests that the Bitcoin market is benefiting from the $1,200 stimulus checks from the U.S. government, with Coinbase noting a strong increase of 300 percent of buys or deposits that are exactly $1,200.

This stimulus from the White House, from the Hill, ties into another bullish story for Bitcoin: global government debt, and even debt in general.

As reported by CryptoSlate previously, global government debt has risen from $30 trillion in 2007, prior to the Great Recession, to $70 trillion and going on “infinity” today. It’s a stark trend that, according to Dan Held, proves it’s time for “plan B,” plan Bitcoin.

Indeed, as the global debt “supercycle” ends, the cryptocurrency stands to benefit in a variety of ways, whether or not there’s inflation, deflation, or the collapse or dissolution of the fiat standard that exists today.

Many other trends, both technical and fundamental, could be added to the list above, but the list would go on for too long. It’s no surprise, then, that many have branded what has transpired over the past few weeks as the “perfect storm for Bitcoin.”

When exactly that storm will strike, though, isn’t all too clear.

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