17 Trillion Reasons to Own Bitcoin, Starting with the Elephant in the Finance Market

According to the Bank for International Settlements report, the growing acceptance of negative interest rates has reached “vaguely troubling” levels.

Investors have been now paying for the privilege of lending, support for which came from the top central banks including the US Federal Reserve, the ECB, and China’s PBOC that has the amount of bonds trading at negative rates reaching a record $17 trillion.

The central bankers’ bank, BIS noted this, equivalent to 20% of the world’s GDP, wouldn’t have been possible even at the depth of the financial crisis.

While yield is sub-zero in the Netherlands and Germany for up to 25 years and recently in Italy as well, most government debts in Japan and Switzerland have dived into negative territory.

“There is something vaguely troubling when the unthinkable becomes routine,”

said the head of the BIS’s Monetary and Economic Department, Claudio Borio.

As such, BIS wants policymakers to use their remaining ammunition with caution as “should a downturn materialize,” they would need a helping hand.

These negative interest rates, however, could be behind the 15% upturn the stock market saw this year, according to Wall Street’s “bond king.”

Bill Gross, the co-founder of bond market behemoth Pimco said,

“Prepare for slow economic growth globally and an end to double-digit market price gains of months and years past.”

In their attempt to ease policy across the world, central banks pushed as much as $17 trillion in bond yields to below zero. This, in turn, boosted stock prices as lower yields on government bonds tend to pump riskier assets’ valuations.

The 10-year Treasury yield has declined from 2.60% at the beginning of this year to 1.696% while S&P 500 is up over 18% this year.

Another risky asset, Bitcoin is meanwhile, up more than 150% in 2019 YTD.

Another factor that would contribute to Bitcoin’s success which is spooking the markets this year is the inversion of the US and other bond yield curves, that historically preceded recessions.

Currently, the leading cryptocurrency is trading at $8,085 with 24 hours gains of 1.35%, as per Coincodex.

BTC bottomed at $3,200 in December 2018 after losing 84% of its value. However, moving in 2019, it went as high as $13,900 before correcting to $8,000.

Currently, the flagship cryptocurrency is getting ready for its upcoming mining reward halving event that historically has been bullish for its price. Even prior to six months to the event, BTC jumped 2.3x in 2012 and 1.7x in 2016, which means before the third halving, we could climb to at least $12,000.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,466FansLike
2,795FollowersFollow
4,237FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today