Fed Announces Third Rate Cut for 2019, Bitcoin (BTC) Still Uncertain
The Fed announced its third rate cut for 2019, signalling this may be the end for the current series of interventions.
The Fed announced its third rate cut for 2019, signalling this may be the end for the current series of interventions.
TheUS Federal Reserveonce again cut interest rates by a quarter percentage points, the third intervention for 2019. Thus, the basis interest rate has been lowered to a target of 1.5-1.75%. The Fed has also signalled the decision may be the last one in this series of quantitative easing.
The Fed lowered the interest rate after a series of overnight and short-term liquidity injections. The lowered interest rate has the aim of releasing more liquidity into the economy, as well as make the US dollar more competitive.
As for Bitcoin (BTC), its most dramatic ascent happened in a climate of rock-bottom interest rates. However, in 2019, the price of BTC is not as dependent on US-based traders. Chinese investors and traders boost the price, which is dependent on the supply of Tether (USDT), much more than the supply of actual US dollars.
BTC traded at $9,133.69, as trading volumes started to deflate and sank to around $25 billion in 24 hours. At this point, there is no consensus on which direction BTC will take in regards to recession troubles. Some believe BTC and gold may be a good hedge against a recession, but also a hedge against inflation.
https://twitter.com/GarethSoloway/status/1189625823046725632
Still, the exact movement of BTC remains unpredictable, with highs reached within days or even hours. Currently, BTC has been stagnant for the past few days, defending the $9,000 level.
BTC also failed to achieve the expected Halloween rally, based on historical performance. Still, the coin is up around $1,000 net this month, adding a monthly gain for the first time since June.
BTC is boosted by a prevalence of Tether (USDT) trading, increasing to 76% of all pairings, up from around 65% before the rally. The BTC market cap dominance remained around 67.3%, as altcoins rallied with separate price pumps.