Cryptocurrencies On The Rise After Fed’s Latest Revelations – Bitcoin Soars 10%
The cryptocurrency market continues to surprise. In cryptocurrencies that have gone green over the past 24 hours, the leading cryptocurrency Bitcoin (BTC) has seen increases of over 10%, Ethereum (ETH) of 6%, Tezos (XTZ) of 8% and Binance Coin (BnB) of 7%. In addition to these crypts, there have been remarkable increases in all coins.
Reason For Increase
The global economy is virtually paralyzed by the Covid-19 epidemic that has afflicted the world. All the world’s states are taking various steps to recover both their national and international economies. Among these steps, the hardest and aggressiveness comes from the United States.
America was aware that even without the Coronavirus outbreak, its economy was deteriorating, and it was taking measures that would lead to serious reasons in the future for its daily survival. The United States, which has made its measures even more aggressive with the epidemic, announced its latest decisions in a statement yesterday.
The Federal Reserve (FED) had announced earlier that it would conduct $ 300 billion worth of loan expansion and $ 700 million worth of asset purchases. Yesterday’s announcement eliminated the figures and said it would buy Treasury bonds and housing loan-based securities” as long as necessary.” It added that commercial housing credit would also be included in housing loan-based securities.
In addition, traditional markets reacted positively immediately after the Fed’s statements but later fell again. The Dow Jones futures were up 2.4 percent after the news, the S&P 500 futures up 2.5 percent and the Nasdaq futures up 3.1 percent.
The fact that Bitcoin has increased along with traditional markets has led investors and analysts to think, “the traditional market/cryptocurrency market correlation continues.” But after the momentary increase, Bitcoin continued its rise while traditional markets fell.
Bitcoin and cryptos
Bitcoin was able to raise its price by up to $ 6,600 in the wake of the reported news, which saw levels of $ 5,750 in the early hours of yesterday morning. At the time of publication, the leading cryptocurrency was trading at $ 6,460.
On the other hand, it is immediately noticeable that there are noticeable increases in almost all cryptocurrencies, not just Bitcoin. According to Coinmarketcap data, overall there have been increases in cryptocurrencies of over 5%.