Cryptocurrency

Bitcoin bulls welcome the Trumps call for negative interest rates

U.S. President Donald Trump called on the U.S. Central Bank on Wednesday to continue to reduce interest rates to Zero or to draw even in the negative range.
Yoni Assia, the founder and CEO of eToro, said a lower rate of interest, “should are driving Bitcoin prices up”. The statement assumed that increased lending increased, at the Bank level, the Bitcoin price.

In the view of many crypto-analysts, investors, Bitcoin could be regarded as a hedge against an uncontrollable monetary policy, precisely when it can be seen that the value of the Fiat-slimming currencies rapidly. Interest rate cuts typically reduce the cost of the underlying currencies, by increasing their offer on the market. Such inflationary practice allows investors to invest in Safe-haven assets such as Bitcoin, which is perceived by many as an emerging hedge plant.
Thomas Lee, Managing Partner at the Fund, Global Advisors, entered is of the view that the movements of the US dollar have an impact on Bitcoin.

“If the Fed moves will have an impact on the USD, the impact on Bitcoin,” he told Barron’s. “We have seen the last year, when the Fed increases the strong USD support and Bitcoin down engine,” said Lee.

Bitcoin is currently not on a High
Bitcoin, recorded at the beginning of August slight gains, as the Fed announced its first rate cut for over a decade. Alex Krüger stresses the difference between theory and practice, since the Bitcoin exchange rate at the moment, has benefited extremely from the FED’s announcement. Possibly Bitcoin as a Safe-Haven needs to establish Asset even further.

“As an uncorrelated asset, the monetary policy is a small driver is,” added Krüger. “I’m surprised that this is still the case, but that’s it. Theoretically, the following applies: The institutional, the asset class is, the more it will react to the Fed. Not here yet.“

Text evidence: bitcoinis, davidbatayan

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.