Stellar Lumens (XLM) Forum with if you love Stellar Lumens please takeover this forum email

Are Central Bank Policies Causing the Cryptocurrency Pump?
  • 3 Vote(s) - 4.33 Average
  • 1
  • 2
  • 3
  • 4
  • 5

[Image: BIC_bank_crypto_pump-750x375.jpg]
Recent price action across the cryptocurrency market has seen certain coins almost double in value and Bitcoin come back towards a bullish trend. There are a few theories as to what has sparked this turnaround, but could it be a reaction to central bank policies?

Fears over a potential global recession have been heightened in the last six to eight months with major central banks enacting policies intended to try and prop up the economy. From a US trade war with China to the European Central Bank printing huge swaths of currency, the global markets are teetering.

An argument has been made that Bitcoin could be a safe haven asset in the case of a recession as the asset has been seen to move counter to other stocks and financial investments – much like gold has done previously. Could it be that, with the US Fed printing, thus devaluing the dollar, and other policies of quantitative easing, these decisions are starting to show cracks with cryptocurrency being the benefactor?

Institutional Interest in Cryptocurrency, or Fear?

One theory put forward by CNBC is that the recent rally in the price of Bitcoin is down to the launch of CME’s Bitcoin futures options trading which opened on Monday. The traditional derivatives trading platform has been growing in popularity for its Bitcoin offerings and could be opening new doors to institutional money.

However, for Mati Greenspan (@MatiGreenspan), the founder of Quantum Economics, the recent bullish turn is probably more down to a fear that traditional markets are in a precarious place.

Quote:[Image: 9RucqfV__bigger.jpg]
Mati Greenspan [tweets are not trading advice]@MatiGreenspan

Are we all feeling the effects of central bank loose money policy yet?!

[Image: EOUDfAjXkAMopZw?format=jpg&name=medium]


4:48 PM - Jan 15, 2020
Twitter Ads info and privacy

For example, the Federal Reserve in the US has been breaking records with its monetary policy. Early this year, the Fed’s intervention in the market was the largest ever recorded, even bigger than during the 2008 financial crisis. The issue here is that the taps have been turned on to keep liquidity flowing, and they will be difficult to turn off.

Quote:[Image: lMHLne7O_bigger.jpg]

Central banks started quantitative easing (QE) & negative interest rates as a temporary measure to bail-out banks 10 yrs ago after the financial crisis..

WHY are they starting QE again now, is there a new crisis, are banks in trouble, what do they know that we don't? #debasement

[Image: EM87evdXkAIj76g?format=jpg&name=medium]


6:46 PM - Dec 29, 2019
Twitter Ads info and privacy

Bitcoin, in contrast to the global economy, is designed to be anti-inflationary and cannot be manipulated in the same manner by entities such as central banks. It is for this reason many feel it can be a successful safe haven should the central bank policies rupture the economy again.

Altcoin Hype?

Another theory as to why the cryptocurrency market is on the rise is the sudden growth of a few altcoins that have reinvigorated interest in the space. Both Bitcoin SV, and Dash, have seen significant spikes in value over the last few days.

For Bitcoin SV, the pump in its price could be associated with the head of the coin, Craig Wright, managing to find the private keys to the notorious Tulip Trust wallets. This spike in price has been so significant it even saw SV overtake Bitcoin Cash briefly in terms of value.

[Image: four-assorted-cryptocurrency-coins-843700-1.jpg]

Altcoin price spikes have been known to reinvigorate the market for a brief period, but of this recent rally is subject to a failing global economy, it could be expected the rally may be prolonged and impressive.

by Julian Thomas

Possibly Related Threads...
Thread Author Replies Views Last Post
  INFO - How can I build a cryptocurrency exchange without coding skills? coinsbot 0 140 24-08-2020, 06:25 AM
Last Post: coinsbot
  INFO - How do I make a cryptocurrency wallet? coinsbot 0 238 06-07-2020, 11:18 AM
Last Post: coinsbot
  Steps to launch your cryptocurrency exchange business solution coinsbot 1 630 19-05-2020, 09:28 PM
Last Post: Milner
  Is White label a good idea to build a cryptocurrency exchange with secure? coinsbot 0 404 17-04-2020, 02:01 PM
Last Post: coinsbot
  Launch a Cryptocurrency exchange platform with IEO module coinsbot 0 526 03-03-2020, 01:22 PM
Last Post: coinsbot
  Why Haven’t Blockchain and Cryptocurrency been mass adopted? crytocure 0 492 25-02-2020, 12:00 PM
Last Post: crytocure
  Free Cryptocurrency: Complete Guide to Earning Free Crypto crytocure 1 677 25-02-2020, 10:13 AM
Last Post: coinsbot
  Check out These 7 Crypto-Friendly Alternatives to Your Local Bank crytocure 0 414 23-02-2020, 04:15 PM
Last Post: crytocure
  Are Cryptocurrency Staking Rewards Today Just Like the Masternode Fad of 2017? crytocure 0 539 23-02-2020, 11:22 AM
Last Post: crytocure
  Forex Or Cryptocurrency Exchanges: Where Is It More Profitable To Trade? crytocure 0 499 19-02-2020, 02:23 PM
Last Post: crytocure

Users browsing this thread: 1 Guest(s)