Bitcoin Reclaimed $9.3K As FED Warns Of Economic Disaster

Bitcoin reclaimed the $9.2K position, reaching new gains right after the US Federal Reserve warned of a medium-term economic disaster that could happen soon. In our Bitcoin news today, we see what the price of the asset looks like after the recent rally.

The central bank decided to maintain the benchmark lending rates close to zero while calling for more stimulus support from the government. This outlook helped to send all of the assets even higher including the Gold. As per the Bitcoin news, the leading cryptocurrency was among the biggest gainers of the week as the FED left the benchmark lending rates close to zero. Bitcoin reclaimed the previous high position  since it shot up by 4.98 percent and hit its seven-week high of $9,233 while still maintaining the gains further into the day. The uphill move came even as the FED predicted a medium-term economic crisis which is caused by the Coronavirus pandemic.

Jerome Powell, the Chairman of the FED said in a press that he expects the US economy to shrink even further because of three major factors: loss of productive capacity caused by the social distancing, the global dimension of the crisis, and the uncertain virus curve. In the meantime, the Federal Open Market Committee added that the FED will act ‘’forcefully, aggressively and proactively’’ in order to save the US economy.

 “The Federal Reserve is committed to using its full range of tools to support the US economy in this challenging time.’’

The central bank also kept the interest rates close to the March 15 levels which were between 0 and 0.25 and promised to maintain the range until the US economy achieves ‘’ maximum employment and price stability goals.’’ The policies of the FED helped Bitcoin and Gold to gain more but for Samson Mow, the cryptocurrency had more solid reasons to grow other than the inflation caused by the world’s biggest bank.

The CSO of blockchain technology company Blockstream said that Bitcoin will get even more demand from the traders thanks to the new mining reward halving on May 12, 2020. The event will lead the cryptocurrency ‘s production down from 1.800 BTC to 900 BTC.  Tyler Durden, who is an activist and journalist, commented:

 “My hope is that the halving will financially destroy as many Chinese miners as possible and we can actually have a legitimate bull market instead of this pump and dump movie.’’