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Wednesday, 27 May 01:44 (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.



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Forex and Cryptocurrencies Forecasts. End of May 2020.

Right before the start of the last trading week of May, 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 May 25th - 29th. So, this is what those predictions look like:
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Bitcoin Grows. EOS May Lead The Market Thanks To Blockchain

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Publication date: 22 April 01:54 AM

DNB's Open For CBDC

De Nederlandsche Bank (DNB), the central bank of the Netherlands, is reported to be open for the CBDC of the ECB. CBDC stands for central bank digital currency. This was officially backed by a 45-page report released on April 21st. With that being said, DNB is ready to play one of the key roles in adopting digital currencies by the global banking system.

Publication date: 22 April 12:47 AM

Bad Economic Figures From USA. Wall Street Reacts.

This time, we are dealing with a peculiar situation. In particular, now that we are facing truly bad figures, the market reaches to them not the way we expected. When it comes to fighting the COVID-19 pandemic, there's almost no positive progress. That's is why international investors are now trying to find some good news in the economic field. Can we actually see some improvements?

Publication date: 02 April 04:04 AM

Dollar Regains Strength, NordFX Reports

Right before the start of another trading, 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 March 30th - April 3rd. So, this is what those predictions look like:

Publication date: 01 April 02:15 PM

Binance and Cryptocurrency Exchange

These days, Binance is a a giant in the world of cryptocurrency exchange. It wont' be an exaggeration to say that this is a Microsoft or a Mercedes in the world of cryptocurrencies. This is a major brand and a symbol of security for those investing in Bitcoin and other digital currencies.

Publication date: 29 March 11:24 PM

Dollar Becomes Safe-Haven Asset Amid COVID-19 Pandemic

Publication date: 22 March 07:48 AM

Fed Cuts Interest Rates Again Amid COVID-19 Pandemic

The U.S. Federal Reserve, which can be considered the world's most influencial central bank, has been really serious about the COVID-19 pandemic going on around the world. For the first time in the history of the Federal Reserve, the central bank has done it twice within a couple of weeks. This time, the key interest rate was cut by 100 basis points, which brought it very close to zero. To be more specific, during the recent urgent FOMC meeting that took place on Sunday, March 15th, the FOMC members almost unanimously decided to cut the interest rated from 1,00-1,25% all the way down to 0,00--,25%.

Publication date: 16 March 07:57 AM

Coronavirus's Impact On Markets Intensifies, NordFX

The period when the coronavirus makes everyone stay at home can be seen as a perfect time for traders and investors to do some extra trading and investing. To help both rookies and seasoned traders and investors to navigate the markets and see the current tendencies much clearer, NordFX has come up with yet another weekly set of forecasts:

Publication date: 15 March 12:17 PM