'Buy Bitcoin (BTC)': Crypto Community Reacts to Fed Cutting Interest Rates to Zero

Mon, 03/16/2020 - 06:05
Alex Dovbnya
The Federal Reserve launching its $700 bln QE program is perceived as the most bullish thing for Bitcoin (BTC)
Cover image via www.shutterstock.com

The Federal Reserve has slashed interest rates to zero in an attempt to prop up the struggling U.S. economy that was hit by the coronavirus crisis. To top that off, the central bank also kicked off a gargantuan $700 bln quantitative easing (QE) program

As expected, the cryptocurrency community perceived this aggressive monetary stimulus as bullish news for Bitcoin whose supply is fixed at 21 mln coins. 

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QE is a gift for Bitcoin 

Trader and cryptocurrency analyst Luke Martin (a.k.a ‘Venture Coinist) is convinced that the stage has already been set for Bitcoin to succeed in the long-term. 

The rationale behind such statements is very simple -- QE significantly increases the supply of the U.S. dollar. Subsequently, Bitcoin, which will become even more scarce during the May halving, is expected to trade stronger against the greenback. 

Kraken CEO Jesse Powell suggests that it’s a good time to go long on Bitcoin, asking how he can take a loan with zero interest.

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Some remain skeptical

Bitcoin’s 40 percent crash that left bulls aghast on March 12 has dampened the enthusiasm of the crypto community, which is why many of its members took the Fed news with a dose of skepticism. 

When Tyler Winklevoss, the CEO of crypto exchange Gemini, tweeted that Bitcoin is a hedge against rate cuts and QE, but some of his followers, including crypto trader John Rager, were quick to point out that the Thursday crash effectively invalidated his claim. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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