U.Today – ECB's Predictions on Bitcoin's Irrelevance

Shortly after the collapse of the FTX/Alameda ecosystem, the European Central Bank (ECB) issued a panic-driven prediction about the "irrelevance" that it believed was coming for all cryptocurrencies. Charles Edwards of Capriole Investments claims that fiat will collapse even sooner.

EUR/BTC Loses 80% Since ECB's Prediction

The euro has lost 80% against Bitcoin (BTC) since the ECB published its alarming document by Ulrich Bindseil and Jürgen Schaaf, titled "Bitcoin's Last Stand," which included dire forecasts for Bitcoin valued at $16,000.

Cryptocurrency analyst and investor Charles Edwards reacted to the ECB's predictions on his X account, suggesting that it may have marked the peak of the EUR rather than a downfall for Bitcoin.

Furthermore, the potential inclusion of Bitcoin into the Federal Reserve could have significant implications for euro valuation. Edwards believes that the failure of all fiat currencies is only a matter of time.

Unlike the ECB's predictions, Edwards' own "Bitcoin Energy Value Model," which projected Bitcoin reaching $100,000 in five years back in March 2020, is close to realization. This week, Bitcoin reached a local high of over $93,000, needing less than 7% to achieve this milestone.

ECB's Anti-Crypto Stance

Despite Bitcoin's rising prices, the ECB remains firmly anti-crypto. As previously reported by U.Today, a November 2022 report from the ECB fueled post-FTX collapse fears, leading advisors to believe Bitcoin was nearing its end.

The ECB's predictions have not swayed opinions within the bank, even as Bitcoin experiences a bullish trend in Q4, 2024. Schaaf, one of the report’s authors, advocated for eliminating Bitcoin, claiming it drains liquidity and reduces the purchasing power of traditional currencies.

This article was originally published on U.Today