Bitcoin price maintains price range; manager with $10 billion in assets buys 10,000 BTC
Stone Ridge follows MicroStrategy in investing in BTC, while a published report estimates the indirect cost of coronavirus at $16 trillion.
Bitcoin (BTC) is winning the battle to become a safe haven, with another institutional purchase registering US$ 115 million in its books.
Asset management giant Stone Ridge has confirmed it made the significant purchase through its subsidiary New York Digital Investment Group or NYDIG, which now has over $1 billion in assets under management.
Eaconomist: Fed needs to print US$ 5 trillion in 2021
“The macro scenario and the public health issue has caused many people to rethink the composition of their portfolios,” said the company’s new CEO, Robert Gutmann, to Forbes on October 13.
Michael Saylor, CEO of MicroStrategy, who bought $425 million from BTC in August and September, responded:
“With the trillions of dollars in balance sheets from banks, asset managers, insurance companies, endowments and family offices beginning their migration to the Crypto Engine universe, they will need companies like NYDIG to guide them. US$ 1 billion less and more must migrate”.
The news comes at a time when a new report warned that the U.S. Federal Reserve will need to print US$ 5 trillion next year.
Published on October 12, the report by economists Lawrence ‘Larry’ Summers and David Cutler calculates the indirect cost of the coronavirus at US$ 16 trillion.
“The total cost is estimated at more than US$ 16 trillion, or approximately 90% of the annual gross domestic product of the USA. For a family of 4, the estimated loss would be almost US$ 200,000”, summarizes the document.
“Approximately half of this figure represents loss of revenue with the recession induced by VOCID-19; the rest is the result of the economic effects of a shorter and less healthy life. ”
Commenting on the findings, David Rosenberg, chief economist of Rosenberg Research & Associates, concluded that the Fed alone would need to print US$ 5 trillion of liquidity in 2021.
This would increase the feeling of discomfort that began with this year’s mass printing, which raised the US national debt to over US$27 trillion.
Rosenberg told Twitter followers to buy gold, but for Max Keiser, there is a clear alternative that makes more sense.
“Gold works, but #Bitcoin is THE FASTEST HORSE OF THE RUN,” he wrote in response to Rosenberg.
Bitcoin reached highs of US$ 11,690 this Tuesday, before returning to US$ 11,400 later, still with monthly gains of 10.5% and accumulated returns in the year of 60%. As published by Cointelegraph, they increase hopes that the short term will bring more advantages, with up to US$ 17,000 coming into play if US$ 12,000 is transformed into support.
From V to K formation
For the fiduciary economy, however, the picture looks much darker, according to new comments from the International Monetary Fund (IMF).
In a statement to CNBC last week, IMF Managing Director Kristalina Georgieva said that the outlook for many countries now is not a recovery in V, but in K.
“Most countries will face an uneven recovery, and in many cases we see a ‘K’, with parts of the economy going very well and other parts contracting dramatically,” she predicted.
For Keizer, this was a didactic definition of a phenomenon he calls ‘neofeudalism’. It involves the concentration of the world’s most wealth near the state, at the expense of those who are farthest away, creating the modern equivalent of lords and peasants.
“The extreme concentration of wealth created by coronavirus becomes permanent. This would be a new Dark Age”, he tweeted on Wednesday.
“Bitcoin fixes it.”