Will the FED Decision Increase Bitcoin Price?
Cryptocurrency markets have been in major downtrend in recent days. Bitcoin and other cryptocurrencies also dropped similarly, after the US index indicators experienced the largest daily sales years later.
The US central bank, FED, is putting intense liquidity on the markets to address companies’ capital access concerns. FED’s $1.5 trillion capital injection seems to be a trump card by crypto analysts. Bitcoin and other digital assets can be affected with this move.
US index indicators showed a heavy loss. The S&P 500 and Nasdaq dropped around 9%, while Dow Jones fell 10%. Markets had their worst days since the 1987 market crash. The rapidly spreading Coronavirus-related hysteria caused continuous sales.
When these panic sales met with FOMO, these situations were inevitable. While valuable metals such as gold and silver have declined, digital assets also suffered a great loss daily after years.
The FED is pumping $1.5 trillion into markets with the Treasuries repurchasing program called quantitative easing.
Bianco Research chief James Bianco spoke about the latest move of the FED with the aim of slowing down the market decline. Bianco described this incident as “firing nuclear weapons”.
“The FED is completely involved. They fired their nuclear weapons. The reason they’re doing it is because the financial markets have stopped functioning properly. There’s no liquidity. There’s hardly any trading. ”
To what extent does the FED’s decision affect Bitcoin?
As Bitcoin moves along with the indexes in the financial markets, it is highly probable that a new QE will support crypto prices in the coming days.
With this possibility, investors depend on believing that capital injection is sufficient to reverse or slow down the ongoing downward trend. However, it seems that the desired effect has not yet achieved.
Turbulent days are waiting for us in the coming days. With coronavirus, global developments and the upcoming Bitcoin Halving, the prices have been very volatile. For more information, you can follow our social media channels and visit our website.
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