Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 7 July 10:15 (GMT -05:00)



Foreign exchange market

Fed Cuts Interest Rates. What Does It Mean For Bitcoin?


The other day, the U.S. Federal Reserve did what many of us had been waiting for. Still, the pace at which tey did was really surprising. In particular, the Fed cut the rates from 1-1,25% all the way down to 0-0,25%. What does it mean for the entire cryptocurrency market?

Why does it look so weird in the first place? Well, the thing is that the Fed already made another interest rate cut a couple of weeks before this one, which is a very rare step in itself. The interest rates eventually dropped to the levels were they used to be in 2008-2015. That is the best proof that a new major crisis is underway.

Since the coronavirus pandemic hit the world, the global economy in general and all of the economies around the globe, including the major ones, have been suffering from its consequences. The entire global financial system is in crisis again. And that's not all. The Fed also decided to pump huge amount of dollars into the market. We are talking about 700 billion dollars in asset purchases, with 500 billion dollars allocated to T-bond purchases and the remaining 200 billion allocated for other securities.

According to the Federal Reserve, they want to restore the normal functioning of the T-bond market as soon as possible. They want to signal the markets that they are not going to limit themselves when it comes to asset purchases.

What does it mean for Bitcoin?

Bitcoin should have saved us during the crisis times. Has it failed so far to do so? Well, yes and no.
To start with, it failed during the first wave of the market panic. Gold and silver are already losing their value, though less rapidly. When the situation stabilizes, the investors will start approaching the market rationally again.
 
We know that the Fed's deicion may (bot not certainly will) lead to an inflation hike. Other central banks are already following the Fed and conducting the same policies. This may trigger an inflation pandemic. If that's the case, international investors may start looking for safe-haven assets. Apparently, those are gooning to be precious metals. What about cryptocurrencies?

Pay attention to the fact that Bitcoin has a determined supply of coins planned in advance. And it doesn't rely on governments and other authorities. It may be a hit. But the key word is MAY. Let's consider the fact that there were no cryptocurrencies during the latest global crisis in 2008. With that being said, we cannot say for sure how Bitcoin is going to behave under such circumstances.

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

JPMorgan: Bitcoin Turned Into Asset and Survived March Crisis

JPMorgan Chase, one of the biggest banks in the United States and the entire world, analyzed the March crash of the cryptocurrency market and published a report on the results of this research. Bitcoin occupies the lion's share of the report. So, the analysts made the conclusion that the BTC market is getting mature, which is confirmed by a strong correlation with most stock markets.

Publication date: 25 June 11:54 AM

Investment Interest In Bitcoin Drops After Halving

Publication date: 21 June 11:33 AM

Ethereum Is Less Private Than Bitcoin

According to a group of Hungarian experts who decided to examine the Ethereum network, ETH transactions turn out to be less private than BTC transactions. The experts published the results of their research after studying a bunch of several, pretty specific functions of Ethereum. Those functions usually make it possible to track the financial flows in the network.

Publication date: 15 June 02:28 AM

COVID-19 Keeps Affecting Dollar

Right before the start of another trading week of June 2020, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is June 15th - 20th. So, this is what those predictions look like:

Publication date: 14 June 10:55 AM

Goldman Sachs Discussed Cryptocurrencies

Publication date: 07 June 03:57 AM

NordFX Wins "Business Excellence" Award By WORLDCOB

The World Confederation of Businesses, WORLDCOB, which unites over 3500 members from over 130 countries of the world, has recognized NordFX's achievements by awarding the company with THE BIZZ Business Excellence Award.

Publication date: 04 June 08:09 AM

Revolut Reports 68% Increase In Crypto Trading

According to the data provided by a British financial company named Revolut, the limitations related to COVID-19 have been affecting the amount and cost of cryptocurrency transactions made by international users.

Publication date: 04 June 05:19 AM

Cryptocurrencies and Forex. Early June 2020.

Right before the start of the first trading week of June 2020, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is June 1st - 5th. So, this is what those predictions look like:

Publication date: 01 June 08:47 AM

Annual Inflation of XRP Exceeds 20%

The annual inflation of XRP has exceeded 20%, which is 5 times as high as the inflation of BTC. The figures were provided by a research company named Messari. This is the highest annual inflation rate registered among cryptocurrencies with decent market capitalization. Apparently, a major increase in the amount of circulating coins leads to a cheaper coin, which is something that's going on with XRP.

Publication date: 01 June 06:10 AM

Bollinger Bands and Forex Strategies

In this article, we are going to take a closer look at a interesting tech analysis indicator called the Bollinger Bands. Any seasoned trader out there has probably applied this indicator to analysing the price chart in order to make a sound trading decision.
Publication date: 31 May 05:50 AM