Bitcoin Rebounds as Coronavirus-Infected Stocks Get Jolt From Fed, BOJ

Home » Bitcoin Rebounds as Coronavirus-Infected Stocks Get Jolt From Fed, BOJ

The price of Bitcoin (BTC) surged the highest in two weeks on Monday, surging with US stocks amid speculation the Federal Reserve and other central banks will support the market as the corona virus spreads.

The largest cryptocurrency based on market value rose 4.1 percent to $ 8,874 at 17:53 UTC (12:53 pt. ET). This step follows a 14 percent selloff last week, the hardest in three months.

Despite the belief among some investors that bitcoin should be traded as a safe haven asset similar to gold or US Treasury bonds, cryptocurrency has recently fallen along with risk assets such as stocks. The sell-off reversed as global authorities, including the Fed, the Bank of Japan, the International Monetary Fund and the World Bank, promised to act if needed to help offset the lasting economic damage from the cancellation of widespread travel, quarantine and factory disruptions.

“Investors dipped their feet back into the water after last week [when] they jumped out of the pool,” said John Todaro, director of currency research at a trading company focused on crypto TradeBlock in New York. “This easy monetary policy across all central banks must continue to support the market in general, especially in risky areas such as the equity market, and it must flow to other asset classes such as digital currencies, including bitcoin.”

Fed Chair Jerome Powell said Friday in a statement that the central bank would “use our tools and act as needed to support the economy.”

Trading on the Chicago Mercantile Exchange for futures on the Fed's benchmark interest rate shows that investors now see a 100 percent chance of a 0.5 percentage point decrease in the central bank's next regular monetary policy decision, scheduled for March 18. The seats are currently set in the range of 1.5 percent and 1.75 percent.

Bank of Japan Governor Haruhiko Kuroda said on Monday that the central bank will “try to stabilize the market and offer sufficient liquidity through market operations and asset purchases,” Reuters reported.

The head of the International Monetary Fund and the World Bank said Monday that their agency is ready to provide “emergency financing, policy advice and technical assistance,” with special attention to “poor countries where the health system is weakest and people are most vulnerable. “

The number of global infections is close to 90,000, according to the New York Times. The first two deaths due to outbreaks now occur in the US, with new cases officially reported in New York, Rhode Island, and Florida.

Economists with the Organization for Economic Cooperation and Development said Monday in an assessment that contagion would likely shave 0.5 percentage point from the projected global growth of 2020, from the “already weak” 2.9 percent.

“Bad impacts on trust, financial markets, the travel sector and disruptions in the supply chain contributed to the downward revision,” the organization said.

The bitcoin rebound has pushed prices up 24 percent so far this year – far better than the performance on the S&P 500, which is still down 6.8 percent in 2020.

Some investors say bitcoin must function as a hedge against economic turmoil, partly because it is considered immune to cycles that have emerged in traditional markets, where the central bank is expected to come to the rescue in the face of selling. The idea is that printing money will trigger inflation, reducing the purchasing power of currencies issued by the government such as the US dollar.

The issuance of the new bitcoin is determined by the original programming of the 11-year-old blockchain network, and cryptocurrency speculators have pegged their hopes to “reduce in half” expected in May – a 50 percent reduction once in four years, a reduction in new inventory steps.

Analysts for the German bank BayernLB predicted last year that half could send the price of bitcoin to $ 90,000.

But traders in the nascent market for the bitcoin option are divided on whether prices will rise above current levels over the next six months. According to Skew, a cryptocurrency-derivatives research company, pricing in the options market shows that it is a coin that throws whether bitcoin will trade above the $ 8,000 figure at the end of September.

ATM, Hashdice, Blackjack, Roulette and many other games are here based on provable fairness of the blockchain technology. Plus, not only having fun, you can be a banker. Join BC.Game now and Boost Cryptocurrencies here!
Modern Bitcoin Casino & Sports betting platform. Enhanced privacy. Instant deposits & withdrawals. Provably fair slots & games. 130+ crypto currencies
WINDICE is the best dice game of cryptocurrency
Roobet, crypto's fastest growing casino. Hop on in, chat to others and play exciting games - Come and join the fun!
Innovative crypto gambling & trading platform. Win and trade Bitcoin and Ethereum. Provably fair games. 1000+ slots and live games. Instant withdrawals.
Bitsler offers casino games like dice and roulette with bitcoin, ethereum, ripple and 17 other cryptocurrencies. Win part of our $1000000+ yearly gambling
Best crypto dice game on the web: instant BTC deposits & withdrawals, a bunch of bonuses, highest faucets, live support, lossback available for HR.
Bitcoin dice game established 2013. Provably fair. Lowest house edge. Instant deposits & withdrawals. Enhanced privacy. Register instantly & gamble Bitcoin

Join Bitcasino Today ☆ Play with 24/7 LIVE Dealers, Slots, Dice and Table Games ☆ Register Anonymously.

CryptoGames is a Bitcoin gambling site offering Dice, Blackjack, Roulette, Lottery, Poker, Plinko and Slot game to play also with Ethereum, Dogecoin & Litecoin.