Back In 2019, The Federal Reserve Board (FED) cut the interest rate thrice in order to achieve greater economic growth. The lower financial cost can lead to an increase in the purchasing and borrowing power of the individuals. However, it can also lead to inflation and reduced purchasing power after a time-lapse.
On one side, we can see that the last 3 FED’s rate cuts have not shown any considerable fluctuation in the price of Bitcoins. And on the other side, analysts have been predicting that FED’s rate cut had just shown positive results for the assets like gold. As a result, many researchers have started claiming Bitcoin as an unsafe asset.
However, the market’s volatility has resulted in a new perception that there might be a bounce-back in the Bitcoin rates if FED decides to cut the interest rates again. In contrast, there are a few analysts who have unparalleled opinions. They believe that FED’s additional rate cut won’t end up in any cheer in the Bitcoin’s price. It will remain as steady as it prevailed in 2019.
In the previous 2-3 months, we have seen a lot of fluctuations in the market resulting in the display of its volatile nature. The US’s attack on Iranian general being one of the reasons behind the market’s unreliable changes. Additionally, Coronavirus has played a disastrous role in the market’s major setback.
Moreover, it’s worth noting that the bitcoin is currently trading at $8,739.56, surging by 1.50 percent within the past 24Hrs. With the dominance of 63.9%, Bitcoin is holding the market capitalization of $159,477,995,785.
While bitcoin bull like Michael Novogratz sees Bitcoin as digital gold, Jerome Powell, the 16th Chairperson of the Federal Reserve calls it as a speculative store of value.