Bitcoin Bullrun by global monetary policy?

And every day the interest greets reduction: in spite of the formal independence of the American Central Bank (FED) it’s US President, Donald Trump will not take, regularly to give advice on their monetary policy. In the process, Trump the interest calls for cuts to stimulate the American economy. Otherwise Trump would be at a competitive disadvantage for the United States and an ‘unfair’ game. Could not be outside the scope of this permanent increase in the money supply in combination with interest rate cuts by the perfect trigger for a Bitcoin?In this article, we take a look at the current state of Bitcoin. How is he actually from the YTD perspective in comparison to the stock markets? Could boost the global monetary policy, besides BTC? – The questions are exciting and it will be time for answers..

Contents

Bitcoin is really a volatile, uncertain Asset?

Again and again there is criticism about the volatility of Bitcoin. Again and again, BTC is classified as extremely risky Asset. In these statements the focus is obviously on the negative aspects and the fact that with a potentially higher risk, a higher Chance associated, is concealed here often. And how much truth is actually in these statements?In order to understand how Bitcoin behaves in the light of the current global uncertainty, we take a look at the Year-to-Date Performance of the BTC, as well as the American stock index Dow Jones. We begin with a look at the Dow Jones and its YTD Performance.

The Dow Jones 30 Industrial: The king class of the U.S. stock

In the Dow Jones 30 Industrial some of the largest and most valuable Stocks in the world are good. The list of the Dow Jones company is full of celebrities: from Apple to Coca-Cola, Goldman Sachs, Intel to McDonalds, Microsoft and Walmart. The span of the so-called Global players in the Dow Jones large.How could beat the Index since the beginning of the year?As we can see, the Dow, as it is often abbreviated, was, until the collapse of the global stock market with a YTD-Performance of about +3 percent. After the black Monday on the stock exchanges, the Dow Jones is currently trading at about 25, 000 points and nearly 13 per cent below the level at the beginning of the year (a frequency of 28,800 points). How could beat BTC at this time?

Bitcoin Performance fails, the Dow Jones is clearly a Safe Haven?

The supposedly high-volatility Asset, the risk is extremely rich, with the Performance of classic shares, indices, match, or Bitcoin in times of global uncertainty, is a total failure can? – To answer this question, let’s take a look at the Year-to-Date Performance of BTC.The answer is quite clear: Bitcoin is with a current market value of 7945 dollars good 10 percent above its market value at the beginning of the year. To put it differently: while the Dow Jones is supposedly the strongest stock index in the world, at -13 percent, listed Bitcoin as 10 percent in the Plus. Up to the time of the significant decline in the Dow Jones, the 18. February began, was Bitcoin as much as 37 percent in the Plus (7.200 USD –> 9.750 USD).Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!

Bitcoin exchange rate, despite the stock crash, with the Outperformance

The message is obvious – even if Bitcoin had to expect in the course of the macro-economic factors with significant losses, is BTC still above his market value at the beginning of the year. So that alone has not been established, Bitcoin of course, as a safe haven. These Figures show, however, that BTC ratio, in spite of the crisis – considerably more robust than the stock indices.In Parallel, shows that the Bitcoin exchange rate lower on the announcement of the Federal Reserve, interest rates, positively responded. The permanent increase in the money supply and the reduction in interest rates is obviously a bullisher Case for BTC, the number of which is limited. The advantages of ‘hard money’ show, in a Situation such as the current significantly. This appreciation of the limited goods in the end just as at the current valuation of Gold.

Monetary policy of the Federal Reserve as a price driver?

People like Mike Novogratz, or Ari Paul, CTO of block tower capital, come to a similar decision. So Novogratz said about a week ago that he sees the current monetary policy of the FED as a major driver for the Bitcoin exchange rate. In a recent Interview by Ari Paul this reaffirmed the theses of the Novogratz. It was said of his side:

I absolutely agree with Novogratz that the strongest bullish case for Bitcoin is currently happening. What we see is good for BTC. The yield on us government bonds, which moves under 1 percent, for example.

We hold that Bitcoin is quoted in comparison to the stock indices are still above his market value at the beginning of the year. We can also say that BTC from decisions of the FED regarding rate cuts and the increase in the money supply benefits. Even if Bitcoin is not completely immune to macro-economic fluctuations, he can still outperform. If the current Situation does not change, therefore, low interest rates and the related case of government bond yields as the true price driver for BTC to turn out.62 % of private CFD accounts lose money. No EU investor protection.Can benefit the Bitcoin exchange rate from the current monetary policy and the behavior of the FED is bullisher factor?Come on in to our Telegram Chat and talk with the experts and the Community!
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(Image source: Shutterstock Finanzen.net)This article does not constitute Investment advice.

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