Deutsche Bank Executive: Aggressive Central Banks Stance Makes Bitcoin More Enticing To Investors
- Deutsche Bank executive believes central banks are taking aggressive monetary policies
- Because of it, the crypto market is going to keep growing and attract more investors
One of the reasons related to Bitcoin’s (BTC) current price increase could be the aggressive policies that central banks are currently taking. This is what Deutsche Bank executive Jim Reid said during an interview with CNBC on June 26. Bitcoin has been in a bull trend during the last few months.
Central Bank Have Aggressive Policies
The head of global fundamental credit strategy at Deutsche Bank, Jim Reid, considers that if central banks operate in an aggressive way, alternative currencies such as Bitcoin could become more attractive. Mr. Reid was making reference to the speech that the chairman of the Fed, Jerome Powell, gave a few days ago regarding central banks and the possibility to cut interest rates.
The U.S. dollar (USD) dropped versus different fiat currencies arund the world and the DXY Index reached also the lowest level in over two months. For example, the U.S. dollar hit a three-month low against the euro (EUR).
Bitcoin continued to grow amid this situation and it surpassed $13,500 just a few hours ago, the highest price ever reached by Bitcoin in over a yaer. This is very positive for the digital currency that seems to be in a new bull trend towards new highs.
Reid has also mentioned that the current spike in different virtual currencies could have been influenced by the recent announcement made by Facebook about its new digital currency Libra. This project aims at helping users perform transactions and payments in a fast and easy way compared to other means of payment currently available. Moreover, it also want to offer financial services to many regions around the world that do not have access to these kinds of services.
According to data provided by Coin360, Bitcoin is currently being traded around $13721 an it has a market capitalization of $241 billion.
Reid explained that the low-interest policies that central banks are currently taking are very aggressive and he shared his negativity about it. At the same time, he mentioned that the continuous printing money of banks could lead to the end of paper money.
The European Central Bank (ECB) has also hinted that it could be cutting interest rates even further. At the moment, Deutsche Bank AG stock price is €6.5 after reaching over €112 in 2007.