Federal Reserve’s Aggressive Easing Could Boost Bitcoin’s Price

Federal Reserve’s aggressive easing could boost the bitcoin bullish price trend at least up to the end of 2020 and in the meantime, the cryptocurrency could also get another boost from the upcoming halving event according to the reports in the altcoin news we have on our website today.

As of the latest meeting in July, the Federal Reserve’s open market committee cut its key interest rate by 0.25% to 2.00-2.25% and this was the first interest rate cut since 2008. At that time, the American central bank even reacted to the massive financial crisis which was caused by the housing bubble. Usually, when a central bank cuts its benchmark interest rate, the national currency becomes much cheaper and it usually happens because the investors find it much less attractive for deposits. When cash holders turn to investments rather than savings, the local businesses get a major boost. Besides the stock market, the store of value assets is also big winners when a rate cut happens and cryptocurrencies like bitcoin fall in this category too.

Bitcoin could be a great medium of exchange and many investors bet on the cryptocurrency because of the capability to store value in the long-term and generate a huge return. A Cheaper us dollar will make the institutional investors consider Bitcoin investments and the FED Chairman Jerome Powell explained that the FED had to support the United States economy thanks to the lower rates amid the Sino-US trade war and the fears of another global recession. There is so much pressure currently on the FED as many investors are seeing some more aggressive stimulus measures from the central bank especially since the US President Donald Trump was disappointed that the FED cut the rate by 0.25 saying:

 “As usual, Powell let us down’’

The trade tensions between China and the United States are escalating and the US economy will require huge support through the lower rates and maybe some more easing. Morgan Stanley expects two more rate cuts by the end of 2019, and other cuts by the end of the year are expected by the end of 2020 and the FED’s funds rate could get close to zero according to the bank as read in the latest cryptocurrency news reports.