Gold continues to float on top this Tuesday resulting in the rise of some cryptocurrencies too. This was after the US Fed Reserve announcement of launching Quantitative easing programs to backstop the economical challenges amid the coronavirus effect.
Bitcoin traded with a net charge of $900( 16% high ) in 24 hours and while writing this article the price surged to $6810 from $5745 on Monday. Good Start for the week.
Like BTC other Crypto-assets also traded well from Monday trade rate, bitcoin cash (BCH) up 12 percent, litecoin (LTC) bleeds green 9.72 percent and bitcoin SV (BSV) high with 14.3 percent rate.
This growth in top Cryptocurrencies is a direct result of Fed reserve’s recent announcements on unlimited asset purchases in the suite of allocating $300 billion to emergency lending programs. The Gold is floating with the same as it started this week. However, the Fed Reserve announcement doesn’t affect the s&p 500 and it continues the downfall on Tuesday to 2.93%. The S&P market marks the all-time downfall records for 4 years of trade.
The coronavirus pandemic has triggered many financial organizations and tech folks to unwrap new Ideas that can help stop the spread and also support the falling economy.
“It is increasingly likely that volatility and uncertainty associated with the coronavirus pandemic continue to increase in the near term across the global financial markets, as we have seen throughout March,” said Dan Zuller, partner at crypto research firm Vision Hill.
According to the CDC, New York state is hit hard among the other states. The USA’s efforts to fight the economy are all new things that have no predictable ending or decision to include for future preparations.
“As the Fed implements more programs to backstop the financial system, such as this morning’s announcement of them buying corporate bonds and agency MBS [mortgage-backed securities], we will see the pressure ease on bitcoin and gold from the collateral selling/leverage unwind side,” said Siddhartha Jha, founder of Arbol, a blockchain-based weather insurance platform.
Unlike any banking or financial organizations the Cryptocurrency investors are eager to see how the money spending is boosted on the account of endless printing.
Followed to which the economist and trader Alex Kruger tweeted. “The price to pay is inflation in the long run. Inflation expectations are popping and the long end of the treasuries (sic) curve is already pricing it in,”
The Bank Officials also seem to be worried about the encashment of the assets and funds in accounts. Whereas, the Crypto geeks are curious to see whether the officials might choose Gold and Crypto as Alternate asset classes.