How will the decrease in rates affect Bitcoin?
How will the decrease in rates affect Bitcoin?
LBLV Analysts: “Soft monetary policy and an unstable situation in the economy increase the demand for Bitcoin.”
After the news from the Federal Reserve, quotes of the first cryptocurrency rose sharply. The news of new duties for goods from China accelerated the growth of Bitcoin, and now the digital currency unit looks like a very attractive alternative to standard investment assets. Forex broker experts emphasize that the unstable economic situation in the world contributes to the sustainable growth of bitcoin.
It is known that easing monetary policy creates the conditions for the devaluation of the national currency, which is an important factor in the increased demand for protective assets.
As a tool to preserve finances, they often use gold and its digital alternative - Bitcoin. LBLV analysts do not exclude that over time, electronic coins will surpass the most popular precious metals in capitalization. In other words, the BTK market may exceed $ 7 trillion.
It is worth considering that the diversification of the investment portfolio through the first cryptocurrency can increase the return on investments in the long and medium term. Bitcoin compares favorably with fiat with projected emissions and limited supply.
According to the latest data, miners mined about 80% of tokens, and several million of them were irretrievably lost.
A stimulus policy can be viewed from two sides: it helps revitalize business activity and improve exports, but weakens the national currency. Import becomes expensive, and the purchasing power of the population is falling.
The actions of the Fed provoke other central banks to similar measures and unleash new trade conflicts.
Soft monetary policy and an unstable situation in the economy increase the demand for Bitcoin. Cryptographic coin is perceived as a protective asset, as a result of which it becomes popular even among the most conservative investors.
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