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- – Bitcoin hit new quarterly highs on Wednesday when the US Federal Reserve. USA He warned of a “medium-term” economic disaster.
- – The central bank has decided to keep its key interest rates close to zero while requesting more support from Washington to stimulate the economy.
- – The bleak outlook helped send all major assets, including the Wall Street index and gold, higher.
- – Bitcoin is one of the biggest winners on Thursday, as the United States Federal Reserve keeps key interest rates close to zero and suggests giving more incentives if necessary.
The anti-trust cryptocurrency rose 4.98 percent to its seven-week high of $ 9,233 and was able to sustain these gains to this day. The upward trend continued even further when the US Federal Reserve. USA He spoke of a bleak “medium-term” economic outlook, led by the coronavirus pandemic, which is increasingly spreading.
Another stimulus
President Jerome Powell said at a press conference on Wednesday that he expected the US economy. USA It will continue to decline due to three factors: the uncertain viral curve, the loss of production capacity due to social distance and the global dimension of the crisis.
Meanwhile, the Federal Open Market Committee added that the Fed would act “energetic, proactive and aggressive” to protect the United States economy.
“The Federal Reserve is determined to use all of its tools to support the American economy at this difficult time,” their two-day meeting concluded on Wednesday.
The central bank kept interest rates close to the March 15 level (between 0 and 0.25 percent) and promised to maintain the range until the United States economy reached its “maximum employment and price stability targets.”
Timely Bitcoin Rally
Fed policies led to Bitcoin, US stocks. USA And even gold to a wild intraday recovery. But for Samson Mow, the crypto currency had stronger reasons for its growth than artificial inflation caused by the world’s largest central bank.
According to the CSO of Blockstream, the technology company Blockstream, Bitcoin will attract increased demand from merchants before halving the reward of the block on May 12, 2020. The event reduces daily production of cryptocurrencies from 1,800 BTC to 900 BTC, the opposite of what the Fed does by printing more units in US dollars.
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But the act of pumping BTC also led to theories about the liquidity of the market. Journalist ZeroHedge, who works under the pseudonym Tyler Durden, called The weekly rise in bitcoin is a “hilarious cycle” – a textbook definition of an illiquid altcoin.
Tyler Durden:
“I hope that halving will financially destroy as many Chinese miners as possible and that we can have a legitimate bull market in place of this pump-and-dump movie.”
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