More

    “The World Will be Forced into Crypto, Just a Matter of When,” as US Prints More Money

    • Bitcoin following gold while stocks back on the rise
    • Deja Vu? Recession fears rears its ugly head again

    The Federal Reserve has approved a widely expected interest rate cut but gave few hints of whether further reductions are ahead.

    Following its meeting, the central bank announced that it would take down its benchmark overnight lending rate to a range of 1.75% to 2%.

    The US economic outlook, Fed Chair Jerome Powell said is “favorable” with strong labor market and inflation likely to return to Fed’s 2% goal.

    This came just two months after the Fed made its very first cut in 11 years.

    Just yesterday, Fed directly injected billions into the market, in a decade.

    President Donald Trump, who called Fed policymakers “boneheads” for not cutting rates enough, yet again tore into Fed’s decision.

    Major U.S. stock exchanges slipped after the decision to cut rates was announced.

    However, they are back in the green. The Dow Jones Industrial Average is up 0.13% at 27,147.08 and S&P 500 is back above 3,000 which was at 2,981, a few hours back.

    Gold price, however, edged lower — for the third consecutive day in a row — after the Fed delivered mixed signals about its next move.

    Bitcoin is following gold as it dropped to $9,600. Currently, BTC/USD is trading at $9,879 with 24 hours loss of 3.26% as per Coincodex.

    Deja Vu? Recession Fears rear Its Ugly Head Again

    As cracks start forming in the financial markets, recession fears had risen.

    A lot has been going already with US-China trade war, weakening data particularity in the manufacturing sector, slowing global economy, and an inverted yield curve.

    The Fed Chair, however, maintained that there is no recession risk while forecasting continued growth.

    Stock markets meanwhile, continued to make new highs in July that after correction in August ensured a rally into September. Then, the Fed made a rate cut.

    The same scenario occurred more than a decade ago, before the recession. We had an inverted yield curve, slower US economic growth and yet S&P 500 made a new high in 2007 only to correct followed by Fed announces rate cut.

    US stocks then proceeded to make another high and then the recession of 2008.

    Although it doesn't mean that history would repeat itself or is any indication of what is to come, the warning signs can’t be ignored either.

    Also, the Fed will continue to be in total denial until after the fact.

    To avoid the same results as the last time, markets need to make sustained highs.

    Investors, however, need to look at other options as Ray Dalio of Bridgewater Associates said in July, find the “next-best currency or storehold of wealth” that isn’t controlled or devalued by central banks.

    This is where Bitcoin becomes a valuable crypto asset.

    “You will be forced into crypto, there is no choice, just a matter of when,”

    said Changepeng Zhao, Binance CEO.

    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 a year now. Before his blockchain beginnings, he 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

    3,368FansLike
    2,785FollowersFollow
    4,136FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Binance CEO: Once QE Money Starts Flowing, BTC's Price Will Go Up ‘Very Dramatically'

    “Since coronavirus took over, business-wise the platform is doing really well” - CZ COVID-19, QEg, depression, and countries printing a lot of money...

    South Korean Central Bank to Roll Out Pilot Program to Test CBDC Through Dec 2021

    On April 6, South Korea’s central bank has made the announcement that it started a pilot program for assessing the logistics of a central...

    Former Goldman Sachs Fund Manager Suggests Allocating 25% in Bitcoin

    When Raoul Pal, the former hedge-fund manager who founded Real Vision first learned the coronavirus was spreading rapidly, he thought, “The whole world's f---ed,”. "I...

    PwC Report Reveals 2019's Crypto M&A's Dropped Sharply; Total Value Decreased By 76%

    The 2017 market boom led to the new era of funding in the decentralized space called ICO, however as we entered the bear market...

    How Much New Inflow Bitcoin Needs to Stay at this Price Level?

    For the last 2.5 years, $400 million of new investment each month kept BTC price at $7,000, after halving it would require just...

    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.