Your favorite crypto news blog

Bullish For Bitcoin: U.S. Federal Reserve Makes Emergency Rate Cut

Bitcoin 2020/03/03 17:54 by Nick James
Bitcoin Vs Gold: Peter Schiff Says Bitcoin’s 2020 Performance Over Gold ‘Means Nothing’

It’s just two months left to the much-anticipated Bitcoin halving event slated for May, and things are already heating up. Despite a few hiccups, the crypto market seems to have been charging up in preparation for a bull run that many have termed as imminent. But something is happening in the US economy that could either propel or stall Bitcoin.

The Federal Reserve has moved to make an emergency rate cut to battle the Coronavirus outbreak. This was brought to the crypto fans’ listening in a tweet posted by Morgan Creek’s Anthony Pompliano.

Understanding Rate Cuts

Basically, a rate cut means that now the banks will be charging each other less lending rates, meaning that more money will flow into the economy. More money will also be printed.

Pompliano went on to mention that he had foreseen this eventuality, saying that the rate cut was targeted at the moment when Bitcoin’s supply shock or reduction is about to happen by this he was referring to the upcoming Bitcoin halving that will slash Bitcoin’s supply rate by 50%. Interestingly, the Federal Reserve decided to cut the rate by 50 basis points.

Effects On The Stock Market

In a separate tweet, Bitcoin developer Jimmy Song expounded on what the rate cut means.

He opined that whenever rate cuts happen, stocks tend to go up because more money is printed. This money then flows into the stock and real estate markets where people invest in assets as a means of value preservation. 

Effects On Crypto And Bitcoin Market

Following the news, many have sought to understand Bitcoin’s next move in reaction to it. Evidently, Bitcoin has been pretty much following the trend in the stock markets of late, meaning that a rise in the stock market will ultimately instigate a rise in Bitcoin’s price.

Jimmy goes on to point out that Bitcoin is going up and seems to have cemented its status as a viable store of value. That, coupled with the upcoming halving event, could prove highly bullish for Bitcoin.

1 Like(s)

You should also read...

Bitcoin 18/11/19 14:27 by Brenda Ngari
As Bitcoin Strives To Reclaim $10,000, Here Are Four Possible Scenarios For BTC In The Long-Term
The cryptocurrency market remains under bear control on Monday (November 18) as all top 10 cryptocurrencies swim in the red. Ethereum, XRP, Bitcoin Cash, EOS, Litecoin (LTC), and Stellar (XLM) are pos...
Read More
Crypto 23/11/19 10:05 by Martin Young
What Caused Crypto Markets to Hit 6-Month Lows?
Total bitcoin and crypto market capitalization has plunged below $200 billion a few hours ago. It is the first time these low levels have been seen for over six months. Signals of a return to crypto w...
Read More
Bitcoin 01/12/19 14:11 by Christine Vasileva
US Stock Markets to Have a Slow 2020, Will Investors Turn to Bitcoin and Crypto?
The US stock market rally in 2019 surprised skeptics, as indexes continued to surge despite underwhelming performance and setbacks for the FAANG stocks. But Wall Street pundits are predicting that 202...
Read More
Bitcoin 24/04/20 03:00 by Cole Petersen
Data Shows Investors are Flocking to Bitcoin as Traditional Safe Havens Falter
Cryptocurrency investors were quite disturbed to see Bitcoin trade as a firmly risk-on asset when it closely mirrored the weakness seen by the traditional markets as investors began to understand the ...
Read More
Altcoins 15/05/20 19:30 by Tony Spilotro
Strong Correlation Between Bitcoin and Stock Market May Finally Be Over
The tight correlation between Bitcoin and the stock market has been deteriorating in recent days. And following the latest price action, the correlation may finally be over and Bitcoin can break free ...
Read More