Market Is Already Pricing In Another Fed Rate Cut, Should You Be Long On Gold, Bitcoin?

  • Stock market plunges today as well, Deutsche Bank says it “has further to go”
  • As fear of global covid-19 pandemic continues to grip the world, the 10-year Treasury drops to record low to 0.667%
  • “Everything is on the table and we are willing to do more,” – St Louis Federal bank president James Bullard
  • Global stocks are extending their slump on Friday

The fear of a global recession triggered by coronavirus has sent stocks plunging yet again with the Dow Jones down 2.3%, the S&P 500 losing 3%, and Nasdaq sliding by 3.3%.

However, according to Deutsche Bank, there is no rest for the exhausted investors as today the bank released a grim analysis where it states that the S&P 500 has already lost 13% to last Friday's closing low “has further to go.” The bank said,

“Our baseline view is for a total sell off from the last peak of 15-20%, with a bottom some time in Q2. We do view the impacts on macro and earnings growth as being relatively short-lived and the market eventually looking through them and maintaining our year-end target of 3250 for the S&P 500.”

Treasuries yield hits record low

The investors are meanwhile propping up gold prices amidst a flight to safety move. Gold is up 1.03% at $1,685.20 an ounce. Another traditional safe-haven asset Treasury is seeing the demand which led the yield, on 10-year Treasury to drop to its yet another low 0.667% at one point today.

As fears of global covid-19 pandemic grips the world, the benchmark 10-year notes hit an all-time low after the Federal Reserve's emergency rate cut sent it below 1% for the first time ever. John Taylor, a money manager at AllianceBernstein said,

“What we are seeing is symptomatic of not enough positive yielding, defensive assets within global fixed income.”

“Central banks are doing everything they can to provide stimulus, which can add fuel to the flames of the bond rally.”

The five-year Treasury yield also dropped to a record low 0.5339%, breaching the 2012 low. The 30-year rate has plunged to 1.2742%, also a record low.

Get ready for more stimulus

The market is now again pricing in for another rate cut. Chris Jeffery, head of rates and inflation at Legal & General Investment Management said,

“The market’s focus is squarely on the growing likelihood of the Fed once again hitting the zero lower bound on short-term interest rates and restarting quantitative easing.”

“With the number of coronavirus cases spiraling higher every day, it’s a brave investor who stands in front of that trend.”

Commenting on Fed’s monetary policy actions against the deadly virus, St Louis Federal bank president James Bullard said, “everything is on the table and we are willing to do more.”

And once the rate goes below zero which isn't too far off, the central bank would turn to more QE and printing where “the poor will pay a far greater price than the rich,” said trader Scott Melker. Crypto trader Joe McCann said,

Bitcoin (BTC) Live Price

1 BTC/USD =$9,554.7194 change ~ -0.11%

Coin Market Cap

$175.72 Billion

24 Hour Volume

$5.06 Billion

24 Hour VWAP

$9.51 K

24 Hour Change


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 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


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Chinese Developers to Use Telegram's Open-Sourced TON Blockchain To Launch Their Own Network

Chinese TON developers announce the launch of their variation of the TON blockchain after successive launches by TON Lab’s Free TON platform and...

JP Morgan Chase Set to Pay $2.5 Million in Crypto Class-Action Lawsuit for Overcharging

The largest bank in the United States, JP Morgan Chase has agreed to pay $2.5 million to settle a class-action lawsuit related to charging...

60% of Bitcoin Supply Not Moved in a Year, What Does it Say About the Next Bull Run?

May is coming to an end and bitcoin is looking to stay above $9,500, ending the month with about 8% returns. The market sentiments are...

E-Commerce Giant, Amazon, Patents Blockchain Authentication Of Accepted Consumer Products

The world-leading e-commerce platform, Amazon Technologies Inc., filed a patent on blockchain technology for proving the authenticity of consumer goods in its online marketplace....

Compound Roadmap to Full Decentralization to Begin with Issuance of COMP to Their Community

Compound will now issue COMP tokens to the users of their protocol in a bid to achieve full decentralization. They have released an...

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