Bitcoin Shoots Up to $6,400 as S&P 500 Falls, Even on Federal Reserve’s ‘QE Infinity’ Nick Chong AMFEIXRelated New

What a crazy day it’s been for markets thus far. Bitcoin, after falling as low as $5,700 during Sunday’s retracement, rallied as high as $6,650 on Monday morning on the back of news from the Federal Reserve.

Bitcoin Shoots Up to $6,400 as S&P 500 Falls, Even on Federal Reserve’s ‘QE Infinity’  Nick Chong  AMFEIXRelated NewsGoldman Sachs’ Call to Buy Gold Cheers Bitcoin Bulls...Bitcoin Near Key Fib Extension Resistance, Can Bulls Spark A New...House Democrats Propose ‘Digital Dollar’ in Move Big For...eToroSimpleFXPlus500CoinmamaPrimeBitLegacyFXBitStarzCryptoGamesmBitBonusfinder DEBspinWolf Bet1xBitRemote Vision: BlockDown 2020 Delivers Star Names for Online...Remitano Becomes the First Crypto Exchange to Offer Refund on Slow...Universal Protocol Alliance to Listing Mega Utility TokenBittrex Global Announces Listing of Vanywhere (VANY)Thesaurum Integrates Blockchain Gaming To Reward Its Users With Gold

While a portion of this move has been retraced, with Bitcoin now trading at $6,400 as of the time of this article’s writing, the cryptocurrency is still outperforming (up 7% on the day) the S&P 500 and Dow Jones, which have fallen 2% since the open as fears of a recession spread.

The stock market’s latest bout of weakness, which may affect Bitcoin, is seemingly a result of a confluence of news regarding the spread of the coronavirus-caused illness COVID-19 and the related economic effects of this outbreak. These include but are not limited to:

  • A more than 50% increase in U.S. coronavirus cases from Friday to Monday.
  • The coronavirus bill‘s failure to “clear the first procedural hurdle” in the Senate.
  • A comment from the Federal Reserve Bank of St. Louis President James Bullard that unemployment could reach 30% in the second quarter, with GDP falling by 50%.

Fed News Hyper-Bullish For Bitcoin

The outperformance of Bitcoin comes as the Federal Reserve has announced a historic measure.

After cutting its policy interest rate by 1.5% in a matter of a month, implementing the fourth phase of quantitative easing, and reducing reserve requirements to zero (meaning banks don’t need to hold any of your money), the United States Federal Reserve will be implementing a series of programs to “support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

These programs include the purchasing of corporate debt, Treasuries, and mortgage-backed securities until the economy normalizes again. (Unfortunately, the Fed’s purchasing of Bitcoin is not on the table.)

While the word “infinite” was not mentioned in the Federal Reserve’s press package on this news, many economists and analysts in the Bitcoin space have dubbed these measures “QE Infinity,” as the central bank has seemingly put no limit on how many assets it can buy in the foreseeable future.

This comes shortly after Su Zhu of Three Arrows Capital remarked that Bitcoin could rally to $50,000 “relatively quickly,” which would mark a 700% gain from the current price of $6,300.

He explained that with the U.S. dollar set on a course for inflation “it will be hard to turn back from,” which has been corroborated by trends in the bond market,” BTC could be set to shine.

Featured Image from Shutterstock

本文来源于互联网:Bitcoin Shoots Up to $6,400 as S&P 500 Falls, Even on Federal Reserve’s ‘QE Infinity’ Nick Chong AMFEIXRelated NewsGoldman Sachs’ Call to Buy Gold Cheers Bitcoin Bulls...Bitcoin Near Key Fib Extension Resistance, Can Bulls Spark A New...House Democrats Propose ‘Digital Dollar’ in Move Big For...eToroSimpleFXPlus500CoinmamaPrimeBitLegacyFXBitStarzCryptoGamesmBitBonusfinder DEBspinWolf Bet1xBitRemote Vision: BlockDown 2020 Delivers Star Names for Online...Remitano Becomes the First Crypto Exchange to Offer Refund on Slow...Universal Protocol Alliance to Listing Mega Utility TokenBittrex Global Announces Listing of Vanywhere (VANY)Thesaurum Integrates Blockchain Gaming To Reward Its Users With Gold

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