US Fed Hints Another Stimulus Package as BTC Surged Above $9.5k
Bitcoin’s price incurred an upsurge above $9.5k yesterday while the U.S. Fed. Reserve left benchmark lending rates close to zero and talked about the provision of another stimulus.
Bitcoin rose by more than 4.98 percent yesterday thereby attaining $9,233, following the warning by the U.S. Federal Reserve regarding a medium-term economic disaster prompted by the current COVID-19 pandemic.
The price of Bitcoin has been on the upside by over 30 percent in the past seven days as halving is imminent. According to US Fed Chairman Jerome Powell, the United States economy should shrink further.
Powell mentioned three factors while talking about the further shrinking of U.S. economy in a press brief yesterday. They include the uncertain virus curve, loss of productive capacity because of social distancing, and the crisis’ international dimension.
The FOMC said the actions it will take to protect the economy will be forceful, proactive, and aggressive. Interest rates will be kept close to March 15 levels (between 0 and 0.25 percent) until the economy produces maximum employment and attains price stability objective.
At press time, the performance of Bitcoin was around $9.5k, a level which is 20 percent more than it was in the past 24 hours. Blockstream CSO Samson Mow thinks that there are more robust reasons for Bitcoin to grow other than artificial inflation driven by the Federal Reserve’s dovish policies towards reviving the economy.
Bitcoin attracted higher demand from traders as the halving gets closer.
At the moment, for every mined block, the reward is 12.5 BTC. However, after the reward, halving would be slashed to 6.25 BTC. Likewise, the event will slash the daily production of Bitcoin by 50 percent from 1,800 BTC to 900 BTC. The U.S. Fed’s preparation to print more dollars makes this very ironic.