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Here is why Bitcoin price is likely to be bullish

Here is why Bitcoin price is likely to be bullish

The year 2020 has so far been an eventful one not only for the global economy but Bitcoin price as well. Whereas, the prevailing pandemic has kept its momentum is still impacting the global economy and Bitcoin price is mostly negative.

As the rate of COVID-19 infection is increasing, the rate of unemployment is also soaring, thereby, causing havoc on all major markets without any discrimination between the stock market and the crypto market.

The measures taken by the central banks all across the globe generally and the U.S. Federal Reserve specifically seem to have vindicated crypto enthusiasts, thereby, proving the significance of possessing rare decentralized digital assets.

A popular investor and economic historian stated that he believes that the world would likely be placing an increased focus on three specific assets, which include Bitcoin, as the possibility of the U.S witnessing negative interest rates increases.

The world goes down Bitcoin price goes up?

Raoul Pal, popular investor and Bitcoin advocate in his recent tweet explained the deflationary wave that the world’s economy is currently going through, is the largest one in modern history. Hence, making the possibility of negative Consumer Price Index (CPI) turning negative exceedingly high.

Pal expresses that in case the Fed is unsuccessful in turning the rate negative then this can lead to monetary conditions to turn into a crisis.

Bitcoin price and Federal Funding Rate

Pal noted that an analysis of the Fed Funds tends to indicate that the FF rate can drop up to 2 percent in the near-term, whilst the ten-year bonds can also flip negative.

 

The negative interest rates can have dire consequences, as it would blow up the whole pension system, along with destroying the value of money.

However, this can prove to be positive for three assets, namely: Bitcoin, Gold and US Dollar. As the Fed would likely be compelled to take extreme measures, hence making the US Dollar the strongest currency.

Taha Farooqui

Taha Farooqui

Taha specializes in copywriting & translating texts. He aims to cover cryptocurrencies & blockchain in both English and local dialects in the Middle Eastern regions. He has helped write, translate, and localize the material related to cryptocurrencies and blockchain.

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