2020 Stock Crash Could Lead To Crypto Rally: Analyst

The 2020 stock crash which has marked the biggest decline in the market since the financial crisis of 2008 could lead to a rally in the cryptocurrency market according to some analysts. In short, the global efforts to stimulate the markets can benefit crypto assets over the next year.

Now, we can see increasingly radical policies aimed at growth and how they devalue national currencies to the detriment of savers, making scarce assets such as Bitcoin more appealing. The CEO of Coinbase, Brian Armstrong, is in the cryptocurrency news now for stating that the slowdown of global markets will force more extreme moves from the central banks in the coming months.

Armstrong also added that capital may well move into crypto markets in response to such attacks on wealth. Previously, we reported about many occasions where fiscal policy served as an inadvertent endorsement of Bitcoin and other crypto assets. However, the 2020 stock crash has seriously affected many markets and the interest rate cuts, quantitative easing and market repurchase agreements (repos) all serve to make the emerging asset class (crypto) more alluring.
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A post on Twitter earlier today shows that the CEO of Coinbase thinks that crypto markets will continue to benefit from such aggressive fiscal policies as markets continue to slow this year.

A down stock market and interest rate cuts may lead to growth in crypto this year. Governments around the world are likely to look to stimulate the economy in any way they can, including using quantitative easing and expanding the money supply (printing money).

— Brian Armstrong (@brian_armstrong) March 3, 2020

Armstrong’s tweet draws attention to the 2020 stock market crash and the Federal Reserve interest rate cuts shared earlier. For those of you who did not follow the news, the US central bank jolted the markets today with emergency measures intended to stimulate against a potential coronavirus-associated economic crisis.

In another tweet which came after this one, Armstrong also highlighted a massive recent Chinese liquidity injection of around $173 billion. As he said, the confluence factors could create a shift in the mindset of many, including the wealthiest investors on the planet.

“This could be the year where the mindset of institutional investors begins to shift, from crypto as a venture bet, to crypto as a reserve currency.”

The “down 2020 stock market” as Armstrong said may lead to further growth. However, there are people who still criticized Armstrong for using the word “crypto” (which is a generic one) instead of “Bitcoin” which refers to the leader of cryptocurrencies.