The BTC to GBP rate has pulled back for a second week, but there is still potential for another advance towards the stubborn 10,000 level. The U.S. dollar pair is showing signs of finding support and this could be a catalyst for the coin to advance against other major currencies such as the Pound.
Another bullish call was made on Bitcoin with the Winklevoss twins making their case for $500k Bitcoin. The pair, who found fame and fortune when launching legal action against Mark Zuckerberg over claims that the Facebook idea was stolen, have since went all-in to digital currencies with the launch of the Gemini exchange.
The bullish thesis for BTC is based around the popular theory of the U.S. debt levels, where they noted that the U.S. debt-to-GDP ratio is set to expand more in 2020 than in the entire previous decade. The twins expect this to trigger inflation, which will see more investors shifting assets into alternative stores of value as the purchasing power of the greenback deteriorates further.
In a research note, they said: “Inflation is coming. Money stored in a bank will get run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold,”
By applying a framework based on the gold price, the analysis suggests that BTC is undervalued by 45x and a $500k valuation is possible.
BTCGBP Technical Outlook
BTC to GBP was trading at 8646, but this is a second minor pullback as the USD pair finds support. The GBP pair is still above an uptrend line from the March lows and this will be the downside risk. A move higher in BTC will need to see the GBP breach the stubborn resistance level at 9550 before attempting the key 10,000 level.