1:40 AMNew BTC rate crash despite Fed cuts
This morning, the BTC against the dollar began to plummet after a short break. The week began with a new recession in global markets triggered by the coronavirus and the depreciation of oil. According to the CoinMarketCap portal, the Bitcoin exchange rate to the dollar is now only $ 4,702. During the day, it fell by 13%, and all other cryptocurrencies from the top 20 are in the red zone.
It is believed that such incentives to increase consumer spending are less effective due to the closure of stores and other facilities in many countries. As bitcoin and stocks got closer to the new black Monday (the second in a row), traders determined a clear line between its long-term and short-term prospects.
Tony Weiss, a well-known trader and analyst, recently warned that Bitcoin will certainly fall below $ 5,000. At the same time, a logical question arises - under what conditions can Bitcoin grow if a decrease in the Fed interest rates to zero does not work?
The main goal of BTC was that it is able to insure investors from another recession. At the same time, the digital coin failed as a refuge, having suffered even greater losses compared with stocks and other securities in the United States.
It should be noted that against the background of news about the Fed rate cut to 0.25, bitcoin showed an increase of over 15%, but the situation did not repeat itself. Well-known analyst Alex Krueger noted that bitcoin changed course after the start of trading on the Chicago futures exchange CME Group. This can not be considered a coincidence given the fact that the exchange greatly affects the cryptocurrency market.
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