The Federal Reserve lowers interest rates and the collapse of the markets
The actions of the United States Federal Reserve Bank no longer seem to be bearing fruit, as it has been shown to have done the opposite.
Bitcoin falls with the stock market
The US Federal Reserve announced last night that interest rates would be reduced to almost zero, and a huge QE program was also announced. Unfortunately, expectations of pumping the market were not met as all of the markets fell. As has been observed in recent weeks, Bitcoin worked with the stock market and therefore also fell.
Bitcoin’s work as a refuge during a recession has gone up in smoke for many. In fact, Bitcoin has experienced a larger decline than risky U.S. stocks.
The price of Bitcoin has dropped more than 15%, despite the bullish news, at least it was seen like that. The price is currently just under $ 4,900, but it looks like it will drop even more.
Famous analyst Alex Krüger said that, oddly enough, the price of Bitcoin reversed soon after the Chicago CME began trading.
Question for bitcoiners: how do you like $ BTC follow actions and react to the Fed? Enjoy?
– Alex Kruger (@krugermacro) March 15, 2020
Here you can clearly see that CME has a huge impact on the crypto market. In addition to the many shortcomings that have been used repeatedly as a topic of conversation, the CME is also attributed to the bursting of the bubble in late 2017. The price of Bitcoin fell in late 2017 with the launch of future CME Bitcoin.
Due to the general state of the market, it is difficult for many to imagine how investors should return to the market. It is still doubtful when and where Bitcoin will find its bottom.
Last Thursday was the worst day for the crypto market when Bitcoin fell 50% overall, which is a historic event. Many will remember this case.
Many believe that a virus will spread, a US president who constantly claims negative interest rates and a sudden drop in oil prices as well as the traditional market would be a catalyst for bitcoin prices. It turns out it’s the opposite.
However, it should not be forgotten that Bitcoin recovered extremely quickly after each major case. Alex Krüger also draws attention to this fact:
In 2018 $ BTC went from $ 6,000 to $ 3,000 in 2 weeks.
In 2020 $ BTC went from $ 6,000 to $ 3,000 in 4 hours.
– Alex Kruger (@krugermacro) March 13, 2020
Although it looks like this right now, it is not the end of cryptocurrencies. The industry is still growing and many developers continue to work on new innovations which are also of interest to many. The crash could also lead to a new phase of accumulation that will allow sophisticated investors to buy Bitcoin again at low prices.