Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
OR
Please fill out the required fields Please fill out the required fields Please fill out the required fields
Get Into Cryptocurrency Trading Today
The Financial Times' chief correspondent for international finance, Henry Sender, has said that central banks, despite being very cautious of cryptocurrencies, are one of the biggest reasons for the price rise in Bitcoin. Central banks have a big role to play in how the economy fairs around the world, and at the moment, they are feeling the strain.
Because of recent events across the globe, and at some of the world’s biggest economies, the currencies of many nations are under threat. There is a trade war developing in China and the US as both these countries are looking to their central banks to put in monetary policies to protect the currencies.
In Europe, there has been a dovish turn that has seen the European Central Bank start to cut rates and print more money.
It is these kinds of factors that the central bank are driving that is having such a major effect on the drive in price of Bitcoin. This stems back to the argument that Bitcoin, as an alternative asset, is becoming more and more popular as a safe haven.
Having already announced federal cuts in the US, for the first time since Bitcoin was invested too, analysts anticipate more dovish announcements from the Federal Reserve at this year’s central banking meeting later this week.
China’s yuan currency is devaluing quite quickly as it fell below the watershed mark of 7 to the U.S. dollar on Aug. 5 and government bonds continue to be plagued by volatility, with little assurance of solid yields.
Of course, there is the ongoing financial crisis in Venezuela and Zimbabwe, which, on a less first-world level, have shown that in times of total economic collapse there is a big drive for Bitcoin as an alternative which still holds value.
Sender argues that the actions of developed market central banks are turning Bitcoin from a speculative instrument into a solid investment that can help to hedge big macro risks.
He cites a report from Grayscale Investments’ research unit, which similarly argued that:
"Bitcoin has the potential to perform well over the course of normal economic cycles as well as liquidity crises, especially those involving currency devaluations," wrote the research department of Grayscale Investments, a digital currency asset manager in New York, adding that It has "store-of-value characteristics similar to real assets like gold, with hard-money attributes like immutable scarcity."
“Indeed, Grayscale frequently describes bitcoin as "digital gold," noting its use case not as a speculative instrument but as a way to hedge big macro risks,” continued Sender. “Its report contains a chart that shows that between the first week of May, when Mr Trump ratcheted up the trade war by raising tariffs on $200 billion of Chinese goods from 10% to 25%, to the first week in August, bitcoin rose along with gold, the yen and the Swiss franc -- but far outpaced these by gaining almost 105%.”
Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
ALL
TRENDING
WATCHLIST
Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.
{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Why is the crypto market down today – Is it the weekend effect or something else?
31 minutes ago | Cryptopolitan
Bitcoin´s quest for breakthrough: A catalyst for LTC and XRP?
55 minutes ago | AMBCrypto
Ripple Case Gains Increasing Significance Amidst Regulatory Crackdown on Coinbase and Binance, Legal Experts Say
55 minutes ago | The Currency Analytics
6 Years in Prison for Arizona Entrepreneur for Offering Shadow Banking Services to Crypto Exchanges
1 hour ago | CryptoPotato
JustBit Casino Review
JustBit Casino, which specializes in virtual currencies, is easy to use because withdrawals are expl...
Huobi Token General Overview
Is Ripple The Cryptocurrency of 2021? - In Depth Review of Ripple XRP
Ethereum Classic Review
Monero General Overview
XBO
XBO.com cryptocurrency exchange redefines how you interact with crypto. Designed to make the benefit...
Bithumb
Understanding Bithumb This article highlights what is Bithumb and where it is located. It also di...
Bitstamp
Bitstamp's continued success in the crypto market This article highlights what Bitstamp is. I...
Bitfinex
Bitfinex general overview delves deep into its operations since its inception in 2012 up to date. It...
FTXUS
Introduction to the FTXUS Trading Platform FTXUS is a type of cryptocurrency derivatives exchange...
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
Cryptopay.me
Updated, Apr 04, 2020 Cryptopay is a revolution for Bitcoin users. This platform offers its custo...
Mycelium
MyCelium is an application for Mobile that offers many possibilities of security and confidentiality...
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
Cryptopay.me
Updated, Apr 04, 2020 Cryptopay is a revolution for Bitcoin users. This platform offers its custo...
Mycelium
MyCelium is an application for Mobile that offers many possibilities of security and confidentiality...
COMMENTS (0)