Over the past few months, Bitcoin has been gaining a lot of financial traction, with the flagship digital currency’s value currently laying around the $11,200 mark. Also, it bears mentioning that recently, a couple of mainstream media analysts — namely, CNBCs Jim Iurio and Bloomberg’s Tyler Cowen — have come forth and showcased their support for BTC.
- President Trump has accused China and the European Union of manipulating their respective currencies so as to compete with the US Dollar.
- To mitigate this ongoing situation, Trump has asked the head of the Federal Reserve, Jerome Powell, to match the “fiscal policy of the aforementioned regions’ respective central banks.”
As many of our regular readers may already be aware of, the last couple of months have seen the price of Bitcoin and Gold increase in an eerily similar fashion. While a lot of mainstream commentators have brushed aside this development as a mere coincidence, a lot of experts believe that this correlation is fundamentally-related.
For example, in a recent interview with eToro’s Mati Greenspan, the analyst was quoted as saying that the primary reason why BTC has been surging alongside Gold is because of the ‘money that a number of central banks have begun to pump into the global economy’. To further elaborate on the matter, Greenspan noted that all of these developments are a direct result of capital (from stocks) coming into alternative assets, primarily because investors are searching for quality SOVs (store of value) right now.
This sentiment was somewhat echoed by RTs Max Keiser, who too is of the belief that when Bitcoin hit its price bottom of $3,150 a few months back, the Federal Reserve started looking to actively initiate its next round of ‘quantitative easing’.
In regards to all this speculation, President Trump recently chimed in by saying that the Chinese government and the European Union were manipulating their currencies by putting a lot of money into their respective financial systems — so as to ‘compete with the United States’.
Over the recent past, China’s central bank has been accused of altering its balance sheets so as to mess around with the global forex market.
In response to this, President Trump has urged the head of the Federal Reserve to “match” the fiscal policy of the aforementioned countries.
Alex Kruger — a respected market analyst — believes that by going head to head against China and the EU, US’ interest rates will be lowered. ,
In closing out this piece, it is worth pointing out that any time issues of low-interest rates, hyperinflation come into the picture, people start to move their earnings/ assets into viable SOVs. As a result of this, many people now believe that Bitcoinand Gold will continue to grow in value as we move into an era of heightened global economic uncertainty.