Experts Speculate Contradictory over Crypto Markets Surge owing to The US Fed’s Interest Cut & Global Markets Slowdown
- The U.S. Federal Reserve announced the interest rate cut by 50 bps on Tuesday to sustain the glooming economy amidst coronavirus outbreak.
- The announcement didn’t go well with the stock markets and all three major stock indices dwindled and the Dow closed at 800 points.
- Bitcoin price soar around 9,000 USD as on today.
Global markets seems to be shaken by the coronavirus crisis and governments across the globe are trying to address the crisis opting out for various solutions.
After the US Fed Chairman Jerome Powell announced the significant interest rate cut, to recover the market losses on Tuesday, March 3. The price of the gold surged by $49 to $1,638 an ounce as on Tuesday.
Last week, the stock markets were badly hit and even the precious metals and cryptocurrencies also performed badly. On Monday, this week, Dow Industrial Jones slashed to 800 points after the announcement of the cut down of interest rates. This week, the markets have recovered a bit reaching around 1200 points.
Expert’s opinions are contradictory on Crypto Industry’s future
On the Fed’s move, Economist and Gold supporter Peter Schiff commented that lowering down the interest rates is not going to alter the corona panic related consumer behavior.
Whereas, some crypto industry experts believe that the global market crash and federations interest cut will escalate the Bitcoin and Cryptocurrencies surge.
Brian Armstrong, CEO of the US-based major cryptocurrency exchange Coinbase has analyzed that the ongoing economic crisis could actually help the crypto industry to grow.
Cryptocurrency could be used as a Reserve Currency
Brian Armstrong believes that governments across the world are trying to escalate the economics by printing more currency (E.g.China) and using quantitative easing solutions.
As the Coronavirus has hit the Chinese economy the worst, the Chinese Central Bank has pumped in $173 billion into the economy to save it from further downfall and keep it floating.
Economist believes that excessive money pumping can lead to inflation. But Armstrong believes that if the investors want to secure their investments against inflation, they can move their funds into cryptocurrencies as a hedge.
Stock Markets continue to plunge but cryptos rising
Financial experts are speculating that the current financial crisis could escalate Bitcoin prices and feds interest cut-rate could actually help to ignite the prices more.
Bitcoin and Altcoin are observing bullish trends with positive sentiment for Bitcoin which is climbing higher above the USD 9,000 resistance as on today. Similarly, most of the top altcoins including the Ethereum, XRP, TRX Litecoin, and Bitcoin Cash are gaining bullish momentum.
CBW - External Analyst