• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
bitcoin bulls welcome trump decision
Nexo

Bitcoin Bulls Welcome Trump’s Call for Negative Rates

davitbabayan by davitbabayan
2 years ago
in Bitcoin, Bitcoin News
0

US President Donald Trump on Wednesday urged the Federal Reserve to cut interest-rate down to zero or even steer in negative rates. Meanwhile, investors in the bitcoin market embraced Trump’s comments excitedly, believing they are bullish for the cryptocurrency. 


Yoni Assia, the founder & CEO of eToro, said a lower interest rate “should drive bitcoin prices up.” The statements borrowed its fat from a well-circulated theory that says that increased lending at banking-level pumps the bitcoin price.

Wow. This should drive #Bitcoin prices up… https://t.co/2qwHwth2qv

— Yoni Assia (@yoniassia) September 11, 2019

According to many crypto evangelists, investors could treat bitcoin as a hedge against runaway monetary policies, accurately when they see the value of the fiat currencies eroding. Rate cuts typically reduce the cost of underlying currencies by increasing their supply in the market. Such an inflationary practice allows investors to fly into safe-haven assets, such as bitcoin, which many perceives as an emerging hedging asset.

The same argument stands true for Gold, a rival hedging asset, but evangelists say investors would choose bitcoin because it is easier to transfer across borders than the yellow metal.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Thomas Lee, the managing partner at Fundstrat Global Advisors, believes that the moves in the US dollar affect bitcoin.

“If the Fed moves impact USD, this impacts bitcoin,” he told Barron’s. “We saw this last year with Fed hikes supporting strong USD and bitcoin down,” said Lee.

The President of the United States of America is pumping my #Bitcoin and #altcoin bags without even realizing it.
It is a glorious day to be in $crypto. 🌞 https://t.co/zS2HOghES5

— notsofast (@notsofast) September 11, 2019

Bitcoin Down, Nevertheless

The theories have not transformed into practical models, nevertheless. Bitcoin earlier in August itched out modest gains as the Fed announced its first rate cut in over a decade. The price rally, which lasted to a stretch of 22 percent on Coinbase exchange, fizzled during the latter half of August, bringing BTC almost $3,000 down from its local top.

bitcoin, bitcoin price
Fed rate cut didn’t help bitcoin in achieving an upside breakout | Image credits: TradingView.com

Market analysts Alex Krüger believes BTCs dismissive performance against the first Fed rate cut proves the asset is too immature. He said shortly after the Fed’s announcement on August 1:

$BTC saw a very minor increase in trading activity at 14:00 EST, time of the FOMC statement. FOMC volatility hit the market the most starting 14:37 EST, during Powell's conference. $BTC did not even flinch then. pic.twitter.com/fBD3LfzEH3

— Alex Krüger (@krugermacro) July 31, 2019

“That’s how an uncorrelated asset for which monetary policy is a minor driver trades,” Krüger added. “I’m surprised this is still the case, but it is. Theoretically, the more institutionalized class the asset class becomes, the more it will react to the Fed. Not there just yet.”

Do you think Fed’s future rate cuts would have any effect on Bitcoin price? Share your thoughts. 


 

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
davitbabayan

davitbabayan

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.