{"id":395950,"date":"2019-09-13T12:00:24","date_gmt":"2019-09-13T12:00:24","guid":{"rendered":"https:\/\/uniquehot.com\/?p=395950"},"modified":"2024-06-11T13:25:25","modified_gmt":"2024-06-11T13:25:25","slug":"central-bankers-ready-to-boost-bitcoin-price-sky-high-heres-why","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/central-bankers-ready-to-boost-bitcoin-price-sky-high-heres-why\/","title":{"rendered":"Central Bankers Ready to Boost Bitcoin Price Sky-High; Here’s Why"},"content":{"rendered":"

According to its proponents, the value proposition of Bitcoin<\/a> (BTC) was dramatically accentuated on Thursday, when central bankers continued their march towards debasement and uncharted monetary territory.<\/p>\n

Related Reading: Bitcoin\u2019s Next Bull Run May Be Sparked By S&P 500 Uptrend, Claims Analyst<\/a><\/h6>\n
Why Crypto: European Central Bank Cuts Rates, Commences QE<\/strong><\/h2>\n
For those who missed the memo, the European Central Bank (ECB) on Thursday revealed that it would be activating yet another round of dovish monetary policies.<\/p>\n
While cryptocurrencies were created to be abstracted from the ins and outs of the fiat world, analysts say that this move by the ECB, coupled with similar steps from other leading central banks, should only prove the need for Bitcoin.<\/p>\n
According to a report from CNN<\/a>, the monetary body overseeing the Euro cut its interest rate for deposits by 10 BPS (0.1%) to -0.5%. Simultaneously, the central bank revealed that it would be starting another round of quantitative easing (QE)<\/a>, promising to purchase some 20 billion Euros worth of bonds and “other financial assets” (not Bitcoin, that’s for sure) every month in hopes that the economy will remain stimulated.<\/p>\n
This comes after President Trump called for the Federal Reserve<\/a>, which is technically not a governmental organization, to \u201cget our interest rates down<\/a> to ZERO, or less\u201d. What’s crazy is that Alan Greenspan, the former chairman of the American monetary authority, has argued that it won’t be long before rates go negative in the U.S.<\/p>\n
Also, the ECB’s move to inject more liquidity into their flagging economy comes amidst news that the People’s Bank of China will start cutting rates “as early as next week”.\u00a0<\/a><\/p>\n
Related Reading: Buy Bitcoin: Legendary Hedge Fund Manager Bashes QE, Low Interest Rates<\/a><\/h6>\n
Dovish Central Banks to Only Boost Bitcoin<\/strong><\/h2>\n
Bitcoin proponents immediately responded to all this news with dismay, showing the irrationality of these policies, which they claim will amount to a catalyst for an increase in the value of non-fiat monies.<\/p>\n
Travis Kling, a former institutional investor turned head of crypto fund Ikigai, wrote that the ECB, by buying 20 million Euros worth of assets, is injecting more money into the economy than the 30-day circulating supply of Bitcoin.<\/p>\n
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Today the ECB cut rates to -0.50% & restarted QE at \u20ac20bn\/month OPEN-ENDED.<\/p>\n
The ECB is buying more bonds every month than the 30-day circulating supply of BTC<\/p>\n
Fed is cutting next week. PBoC is cutting next week.<\/p>\n
A race amongst central bankers to devalue their currencies ASAP.<\/p>\n
— Travis Kling (@Travis_Kling) September 12, 2019<\/a><\/p><\/blockquote>\n