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The US Fed will cut interest rates to "catch up" with Bitcoin after halving

The Republic of Georgia exercises tax exemptions for Bitcoin

Traders believe that the US Federal Reserve (Fed) will cut interest rate targets to compete with Bitcoin (BTC) after halving.

Follow report By Reuters on February 28, Wall Street traders looked at the possibility of the Fed cutting interest rates to boost the economy to overcome the challenges caused by the corona virus more than 75%.

Fed tracks corona virus

As of September, the interest rate cuts totaled 0.75% – bringing short-term interest rates below 1% for the first time in 3 years.

The Fed did not appear because of the coronavirus – which is currently spreading rapidly outside the Chinese epidemic.

“I think it is still too early until we have more data and have some idea to predict monetary policy action,” said Charles Evans, chairman of the Chicago Fed. Year.

“But we monitor it very closely and if we see something that needs adjustment, I'm confident we will make all the considerations it needs.”

Previously, US President Donald Trump described the threat of corona virus to the country still “very low”.

The United States caught up with the Bitcoin game

The significant rate cut will keep the Fed catching up with Bitcoin's planned supply cuts – set in May. Known as Halving, this event will reduce 50% of the “new” Bitcoin issued to miners every 10 minutes.

After halving, Bitcoin's inflation rate will be below 2% – lower than the Fed's current long-term goal, and also surpass gold.

Meanwhile, Bitcoin's relationship with corona virus remains a speculative topic. Previously that had increased as the market became volatile, further declines also led to the BTC / USD pair falling.

Bitcoin compared to S&P 500 shows the effect of corona virus. Source: Skew Markets
Bitcoin compared to S&P 500 shows the effect of corona virus. Source: Skew Markets

On Wednesday, the Dow Jones recorded the biggest drop in history. As Toiyeubitcoin reported, a famous Bitcoin-backed analyst bet that Bitcoin would reach $ 40,000 before the Dow hit 40,000 points.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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