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Bitcoin (BTC) price perked up today, rallying from $5,688 to a daily high at $6,600. The digital asset defied the worst fears of analysts by holding above the $5,400 support and currently Bitcoin continues to show growing strength in the face of wilting equities markets.
Interestingly, gold and silver prices also rallied 4.42% and 5.94% as the S&P500 and Dow closed the day with moderate losses. This could indicate that market participants who recently exited their stock positions could be looking for shelter and growth in store-of-value assets.
Bitcoin’s (BTC) price shot up along with gold and stock futures after the U.S. Federal Reserve announced a quantitative easing package with no upper limit to support the economy amid the coronavirus crisis.
Upon the announcement, all the markets reacted positively, charting a quick increase. The S&P 500 futures shot up to 2,345, while NASDAQ 100 futures increased to 7,200. However, the markets were quick to retrace as the Nasdaq futures dropped to 6,990 and S&P 500 to 2,270.
It’s interesting to note whether or not these measures will have a long-term positive effect on the market. They do seem quite extreme as this would put even more strain on the US dollar, reducing its value on the way.
These programs include the purchasing of corporate debt, Treasuries, and mortgage-backed securities until the economy normalizes again. (Unfortunately, the Fed’s purchasing of Bitcoin is not on the table.)
While the word “infinite” was not mentioned in the Federal Reserve’s press package on this news, many economists and analysts in the Bitcoin space have dubbed these measures “QE Infinity,” as the central bank has seemingly put no limit on how many assets it can buy in the foreseeable future.
Catherine Coley, chief executive officer of Binance.US, confirms crypto trading volume is on the rise.
“Despite the market downturn, Binance.US is seeing unprecedented trading volumes, with especially active trading in Bitcoin. We are also seeing heightened interest in stablecoins as investors recognize the importance of hedging volatility during highly uncertain times.”
A draft of the legislation circulating as of March 23 proposes the creation of digital wallets for U.S. citizens to be maintained by the Federal Reserve within a section entitled “Direct Stimulus Payments for Families.”
The section envisions $2,000 monthly payments to every adult earning less than $75,000 a year, at which points the payments taper off. These payments would last until the economy recovers.
While the proposal does indicate the option of providing checks, it would require member banks of the federal reserve to maintain digital dollar wallets for all clients.
The global demand for stablecoins has been ongoing for quite some time now. Even so, one still has to wonder if it is safe to be exposed to these particular digital assets.
During extensive periods of volatility, one often looks for things that can retain their value.
With a collective market cap of $173 billion, the cryptocurrency market appeared to be heading for much-needed recovery, at the time of writing. This was after a massive pullback had brought the cryptocurrency market to its heels in early-March. With colossal fluctuation playing its part, Bitcoin continued to scuffle the bearish momentum; however, many altcoins seemed to have posted significant rallies this past week.
The Fed said:
“While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
Interestingly, in yet another red turned green start of the week, the hash rate of the network increased significantly, 18.2% going above 92 Th/s in the last 24 hours which is not good for miners as the struggling price could again fall into $3,000s.
According to Trader XO, in the short term, the 200-day moving average is the level to watch as he explained,
- CoronaCoin is an altcoin which increases in price according the number of coronavirus-related deaths.
- Despite its salacious profiteering, the coin has lost almost 90% of its value in the last month.
- Instead, users should funnel those funds to legitimate charities fighting the spread of the virus.
- Governments around the world are increasing surveillance.
- This surveillance will be used to help stop the spread of the coronavirus.
- But once over, will governments stop acting like Big Brother?
Crypto exchanges were not prepared for the crypto crash on March 12, and some platforms encountered temporary technical difficulties. Huobi and OKEx were among the exchanges that went down due to congestion, causing many traders to suffer significant losses.
Putting all of this together, a resilient global internet connecting all of humankind with cryptocurrency fully expressing energy, and an AI completely defining matter, we have now a new and final age of man. This age would herald the end of fiat and the legacy ideas of scarcity and rent-seeking. Still, the only way that this can ever be successful is to end the idea of ‘other’. As Adi Da says, “Not Two Is Peace”. This new universe would encourage and require a global cooperation towards the objective of furthering the species in a way that supports our ability to create.