3 Ways US Fed Printing Is Fueling Huge Gold, Silver and Bitcoin Rally

3 Ways US Fed Printing Is Fueling Huge Gold, Silver and Bitcoin Rally

Federal Reserve monetary policy appears to be a primary catalyst for the current rally in gold, silver and Bitcoin.

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The prices of gold, silver, and Bitcoin (BTC) are all rallying in tandem, as various macro factors boost alternative assets. As gold rose to a new all-time high at $2,055, BTC rallied to $11,715 on the day, recording a 4.28% increase.

Gold-USD. Monthly chart

Gold-USD. Monthly chart. Source: TradingView.com

As the three assets see stronger momentum altogether, there are three factors to consider. These are: gold’s correlation with Bitcoin, the effect of the declining U.S. dollar on alternative assets, and increased liquidity stemming from aggressive monetary policies from central banks.

Bitcoin’s increasing correlation with gold

Prior to February 2020, there was not a clear correlation between Bitcoin and gold but after the massive Bitcoin price correction to $3,750 on March 12, signs of strengthening correlation between the two emerged.

Increasing correlation between Bitcoin and gold

Increasing correlation between Bitcoin and gold. Source: Skew

Whether the timing of this increasing correlation is simply due to investors re-entering the market after the Black Thursday crash remains uncertain but it is possible to argue that every asset class, including stocks, precious metals, and cryptocurrencies, fell in mid-March.

Another way of analyzing the data could be that the declining U.S. dollar and rising inflation boosted investor sentiment around gold. As safe-haven assets benefited from macro factors, Bitcoin also rallied as more investors began to consider it as a store of value.

The declining dollar is a positive catalyst for each asset

As gold, silver, and Bitcoin rallied simultaneously since April, the U.S. dollar has underperformed significantly against other reserve currencies.

The declining value of the U.S. dollar has positively affected precious metals and Bitcoin in recent months. Some analysts, including Bitcoin researcher Mark Wilcox, said BTC’s rally can be attributed to the fading dollar, rather than the price of BTC increasing.

Since April 1, silver has also rallied by 90% against the dollar, outperforming both Bitcoin and gold in the same period. BTC increased by 85% since, and gold rose by 30%.

BTC-USD daily chart

BTC-USD daily chart. Source: TradingView.com

In July, the U.S. dollar suffered its worst month in over ten years and as Cointelegraph reported, the dollar is now at risk of falling below a key 12-year trendline.

The growing number of coronavirus cases and a double-digit unemployment rate appear to be triggering a downtrend in the U.S. economy and the dollar. 

Thus, in the near-term, analysts anticipate the slump to continue and theoretically this would benefit gold, silver, and Bitcoin.

Liquidity from central banks is growing

After the Federal Reserve decided to maintain the Fed Funds Rate at near-zero, other central banks followed suit.

China said it would make its monetary policy more flexible, a strategy it has historically avoided for long-term stability. Meanwhile, Thailand’s central bank decided to leave its record-low interest rate unchanged in expectation of a gradual economic recovery.

Relaxed financial conditions, growing liquidity in the markets, and rising inflation are fueling the demand for safe-haven assets. There is more capital in the market than before and a stronger value proposition for robust stores of value.

The current macro landscape put together with the momentum of gold, silver, and Bitcoin could continue to fuel the demand for precious metals and cryptocurrencies.

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Federal Reserve monetary policy appears to be a primary catalyst for the current rally in gold, silver and Bitcoin.

Australian Reserve Bank Blasts Money Printing: ‚There’s No Free Lunch‘

Australian Reserve Bank Blasts Money Printing: ‚There’s No Free Lunch‘

Australian Reserve Bank governor Philip Lowe says that somebody always pays for money printing.

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Australian Reserve Bank governor Philip Lowe has taken a swipe at the concept of money printing, as further fiscal stimulus measures are rolled out in the country amid the ongoing pandemic.

In a speech in Sydney on Tuesday, the central bank boss said the government could borrow “on very favorable terms” and said public debt was currently much lower than in many other countries. Calls for money printing are misguided he said:

“There is no free lunch. The tab always has to be paid and it is paid out of taxes and government revenues in one form or another […] The message here is that somebody always pays.”

Dr Lowe, who has headed the RBA since September 2016, made the comments following the announcement of extensions of emergency social security measures that will cost an additional $AU20 billion ($US14.2bn), according to reports.

No free lunch with money printing

Lowe is opposed to following the US Federal Reserve’s strategy of rampant money printing, and is adamant that monetary financing of fiscal policy is only appropriate if the government could not influence the amount of money the central bank created, and where government debts were very high.

The RBA is not totally adverse to modern monetary theory, however, having repurchased around $AU50 billion ($US35.6bn) in state and federal government bonds over the past three months, while slashing interest rates to a record low 0.25%. Lowe ruled out negative interest rates in his speech on Tuesday.

Safe haven narrative strengthens for Bitcoin

Fiscal stimulus packages that involve printing more money are seen as good news for Bitcoin holders as they strengthen the underlying safe haven narrative due to its nature as a finite asset. Digital asset manager, Charles Edwards, commented this week on the U.S. stock market hitting new highs while the country was still in recession:

“This is the power of exponential money printing. Your dollars in 2020 are worth 28% less than 2019.”

He said overvalued stocks contrasted with undervalued Bitcoin, adding that, in his opinion, it is just a matter of time before the money floods into Bitcoin.

European leaders strike $2 trillion stimulus deal

In related news, EU leaders have agreed to a 750 billion Euro ($US865 billion) recovery fund, with the money to be borrowed on financial markets. Just under half of it will be distributed in grants to the hardest hit EU states.

The European Commission also agreed upon a new EU budget of nearly 1.1 trillion Euros ($US1.27 trillion) for the 2021 to 2027 period. This creates a combined spending power of approximately $2 trillion USD.

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Australian Reserve Bank governor Philip Lowe says that somebody always pays for money printing.

As US Pumps Trillions Into Economy, Bitcoin Price Likely to Be Affected

As US Pumps Trillions Into Economy, Bitcoin Price Likely to Be Affected

The U.S. is printing dollars and slashing interest rates to help the people, but will it affect the crypto market?

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Policymakers around the world have committed unprecedented amounts of fresh money in a bid to stave off an impending recession, or worse: a total depression. In the United States, the Senate approved a $2 trillion stimulus package in late March, and now Congress is set to review a proposal from House Democrats for another $3 trillion meant to ease the needs of Americans who are facing an unemployment rate of nearly 15%. As a response to COVID-19, the Federal Reserve has undertaken a wave of quantitative easing unparalleled in its history.

As the monetary body responsible for managing the world’s reserve currency, the Fed uses quantitative easing as a means of infusing the economy with fresh liquidity. Having total control over money printing allows the Fed to print as many dollars as it wants, which it then injects into the financial system by purchasing assets on the open market.

Market observers recall the aftermath of the Great Recession in 2008, when the Fed brought up over $1.2 trillion worth of assets in just four months as a way to pump fresh capital into the markets. However, the scale of quantitative easing undertaken in the wake of the COVID-19 crisis dwarfs anything that happened before, with the Fed putting no cap on the amount of money it plans to infuse into the system.

Over the past 2 1/2 months, the Fed has purchased around $2.8 trillion worth of assets. Unlike in the aftermath of 2008 when the governing body limited its asset purchases to secure U.S. Treasury bonds, this time around it has committed to buying riskier assets such as corporate and municipal bonds as well.

What should crypto investors expect?

U.S. bailout money is expected to go toward helping public companies and preventing shareholders from losing their value. This new money is expected to inflate the cost of assets, but since most Americans don’t own assets, the only result they will experience is a weakening purchasing power. Beni Hakak, the CEO of LiquidApps, sees an opportunity for Bitcoin (BTC) to establish itself as a store of value:

„The COVID financial crisis is the first crisis that Bitcoin is experiencing as an asset class, and while some expected it to perform similar to gold, it led to a sharp decline in Bitcoin’s price. As the world economy has started to open up, Bitcoin has recovered quite nicely, outperforming the S&P since their respective lows. With the Bitcoin halving behind us, an event that has historically been followed by a bull run, it will be interesting to see if Bitcoin can gain acceptance as a hedge against inflation and a store of value.”

Quantitative easing vs. quantitive hardening

Contrast the seemingly unlimited money printing taking place with the Bitcoin halving, an event that happens once every four years and cuts down Bitcoin’s issuance by half. For crypto believers, this is further proof of Bitcoin’s status as the “hardest money in the world.” Bitcoin’s provable scarcity is drawing attention from average investors and users concerned about money printing and the potential it has to cause runaway inflation.

Related: Fed’s Quantitative Easing Strategy Holds Long-Term Benefits for Crypto

While the system may be “baked” with transparency and non-regulations, Avi Rosten, a product manager at CryptoCompare — a crypto data and research platform — says that through his tracking he’s finding the market to be fluctuating a lot. The high volume signals distrust, noting big fluctuations in the U.S. stock market between March 12 and March 13 when CryptoCompare counted 11,000 trades per second. Rosten says everyone is flying away from risk-on assets to the U.S. dollar with Bitcoin as no exception. He added that this is the optimum time for Bitcoin to prove its value as an asset as all eyes are on it:

„We are likely seeing increased interest due to the excitement surrounding the Bitcoin halving, as well as record spot exchange volumes. Our April Exchange Review found that April 30th saw the second highest spot volumes in crypto history.“

The U.S. may be at the epicenter of the financial storm, but it doesn’t mean that other economies aren’t feeling the tremors. Quantitative easing measures such as the recently proposed $3 trillion have caused currencies such as the Brazilian real, Mexican peso and South African rand to experience a more than 20% loss in value to the dollar since the beginning of the coronavirus crisis.

The uncertainty following the mid-March crash pushed Bitcoin into taking the place of what historically has been gold. While markets are slowly climbing their way back up from the trenches, many countries are experiencing a second wave of the coronavirus, pumping the breaks on the recovery process.

A throwback to the ‘70s?

The year is 1973, and an oil crisis sends shockwaves throughout global markets. Governments, especially in the U.S., go the route of money printing as a move to stimulate the job market. Attention shifts to scarce commodities such as gold as investors look to hedge against the risk of rising inflation.

While this description of uncertainty adequately fits today’s climate, it also pairs nicely with the economic condition of the 1970s. The decade, which began with the U.S. abandoning the gold standard entirely, ended with a crippling 13.3% annual inflation rate in the country, even as wages and economic growth trended sideways. A combination of stagnant growth and rising inflation, or “stagflation,” pushed gold into the limelight as an inflation-resistant store of value.

Fast forward to now, and fiat currencies are expanding their supply at the same time as the Bitcoin halving. With inflation fears beginning to pop up in the markets again, assets with provable scarcity are considered well-positioned. Mati Greenspan, an analyst and the founder of Quantum Economics, believes that following the large-scale quantitative easing rollouts, Bitcoin will maintain its future value due to its scarce supply:

“It [Bitcoin] acts as a hedge against inflation like gold and silver. So if the likely scenario of this money creation happens to induce inflation, then it’s very likely that gold, silver and Bitcoin would hold their value against that currency and act as a valid hedge.”

Related: Bitcoin Gains Ground on Gold, Bolsters Claim as the Asset of Tomorrow

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The U.S. is printing dollars and slashing interest rates to help the people, but will it affect the crypto market?

Bitcoin Price Charges Past $6K as Fed Stimulus Plans Boost Markets

Bitcoin Price Charges Past $6K as Fed Stimulus Plans Boost Markets

More money printing from the Fed, but Bitcoin takes the opportunity to shoot to $6,300 highs

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Bitcoin (BTC) abruptly moved higher on March 23, beating $6,000 as global markets reacted to fresh stimulus plans from the United States Federal Reserve.

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

BTC bounces with Wall Street yet to open

Data from Coin360 and Cointelegraph Markets tracked BTC/USD reaching 24-hour highs of $6,310 on Monday — daily gains of almost 5%.

Current levels put Bitcoin back in the position in which it traded before a downturn caught markets on Sunday.

Bitcoin 1-day price chart

Bitcoin 1-day price chart. Source: Coin360

Despite the enormity of the money printing exercise at stake, the Federal Reserve’s latest plans to provide unlimited liquidity appeared to buoy fragile markets. One part will be a $300 billion scheme to “support the flow of credit” throughout the economy.

“While great uncertainty remains, it has become clear that our economy will face severe disruptions,” part of a statement quoted by CNBC reads.

Previously, U.S. futures had collapsed 5% in just three minutes to trigger an automatic shutdown.

Wall Street was still closed at press time, as traders waited to see if preliminary good news could prevent a third “Black Monday” event in a row.

When decoupling?

While opinions remain mixed as to how Bitcoin would continue to react to the new financial crisis, cautious optimism was beginning to hit analysts.

As Cointelegraph reported, for statistician Willy Woo, the cryptocurrency was already showing signs of “decoupling” from traditional markets as the week began. Another week’s trading was however needed to confirm this, he argued. 

Bitcoin’s recovery has remained extraordinary. In the space of just eleven days, BTC/USD has gained 70% — firmly beating any other major asset.

Keep track of top crypto markets in real time here

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More money printing from the Fed, but Bitcoin takes the opportunity to shoot to $6,300 highs

Bitcoin Is Money Printing Protection as US Bond Yields Hit Lowest Ever

Bitcoin Is Money Printing Protection as US Bond Yields Hit Lowest Ever

“Uncorrelated” Bitcoin has proven its credentials in the wake of fiat economy panic, supporters say

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Bitcoin (BTC) is not a hedge against “every” global meltdown but will ultimately protect its users from central banks, governments and fiat money printing.

That was the consensus building among cryptocurrency supporters on March 10, as traders awaited the next stage of worldwide panic — this had given much of the economy its worst day since the 2008 financial crisis.

BTC increasingly “uncorrelated”

On Monday, currency markets and stocks led the losses, which were later joined by markets such as United States government bond yields.

In a move unprecedented in history, the entire U.S. bond yield curve dropped below 1% — signaling intense concern from traders over a global recession, an oil price war and, of course, coronavirus. 

Bitcoin 1-year chart versus U.S. 10-year bond yields

Bitcoin 1-year chart versus U.S. 10-year bond yields. Source: Skew Markets

At the same time, Bitcoin shed around 15% overnight, volatility which at press time had nonetheless subsided.

Noting historical behavior, Hunter Horsely, CEO of BitWise, said that BTC was performing much better than before versus the S&P 500 in particular.

“S&P is -7.6% today. Based on historical volatility, a -7.6% move in S&P is == to -41% in BTC,” he wrote on Twitter. 

“Yet in the last 24 hrs BTC is only -5%. And only -0.5% since midnight today. That’s uncorrelated.”

A hedge against money printing

AngelList CEO Naval Ravikant meanwhile suggested that investors zoom out from recent price adjustments.

“At the moment, Bitcoin is not a general hedge against every black swan and still behaves like a ‘risk on” trade,’ he responded to criticism of the cryptocurrency’s performance. 

“But long term, Bitcoin is a hedge against central banks printing money, which is inevitable as a reaction to the virus.”

Bitcoin has traditionally favored investors with a low time preference — those who understand that saving in sound money guarantees more wealth in the future versus spending and borrowing.

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“Uncorrelated” Bitcoin has proven its credentials in the wake of fiat economy panic, supporters say

Blockchain and 3D Printing Are Reinventing Aerospace Supply Chains

Blockchain and 3D Printing Are Reinventing Aerospace Supply Chains

EY Global blockchain lead supports blockchain in 3D printing: “I believe that 3D printing, as it matures, will have a tremendous impact on industries”

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Blockchain, like many other emerging technologies, is enthusiastically touted as a solution to many of the world’s problems. Perhaps because of its relation to cryptocurrency or the narrative prophecies that surround them both, blockchain draws both criticism and praise from a staggering array of sectors.

However, with the big blockchain push from Chinese President Xi Jinping along with many tech, finance and industry giants piloting blockchain implementation, the number of use cases grows with each passing day. While cryptocurrency more often draws ire from the mainstream financial world, it seems that for blockchain, the sky’s the limit — but not for long.

A combination of blockchain and 3D printing for aircraft parts may launch the technology into the stratosphere. Cointelegraph spoke to major players in aerospace, including Ernst & Young’s global blockchain leader about blockchain’s vast potential to impact global business through 3D printing.

Moog Inc. trials blockchain

Man first took to the skies in 1903. Orville Wright, poised at the controls of what now seems a laughably simple aircraft, changed the path of humanity’s progression forever. From that bumpy, unceremonious take-off in a North Carolina field grew a titanic industry that would support humanity’s desire to test the limits of creativity.

In 2019, up to 20,000 planes are in the sky at any one time, and the process of building up and maintaining such a gargantuan fleet of aircraft has been a complex and intricate process. Innovations that improve the performance of planes are widely publicized and play an important role in the profitability of aircraft producers. The market is increasingly crowded and companies are racing to develop breakthroughs before their competitors. Despite this, the industry that has grown around the maintenance of the parts that make up an aircraft remains needlessly complex and stuck in the past.

Based in New York state, aircraft parts manufacturer Moog Inc. is trialing a combination of blockchain and 3D printing that could give a creaking industry the rejuvenation it badly needs. As it stands, aircraft parts undergo a long, expensive and time-consuming journey along a complex supply chain. Rightly subject to strict regulation, with all involved companies requiring certification from the Federal Aviation Administration, the process from design to delivery is slow and can take weeks at a time.

Related: Blockchain Adoption Takes Off in Airlines, Aviation Industry

Moog’s solution to streamline production comes in the form of digital blueprints for aircraft components stored in a distributed ledger and printed by a 3D printer. Through the ambitious project, part orders could be completed in a few hours as opposed to a few weeks. If the trial proves successful, product designs will be ready to go on a blockchain and printed on demand, as opposed to mass-produced and shipped from distant locations when needed.

Like many blockchain projects, the goal is to decentralize industries, speed them up, and increase their security. Rather than a linear path from manufacturer to airport, an order from Air New Zealand, for example, took place via a global network of companies. As part of a pilot test, the airline company placed an order for an in-seat screen on one of their Boeing 777-300s while the flight was mid-way between Auckland and its Los Angeles destination.

The airline team in New Zealand ordered the digital blueprint from Singapore Technologies Engineering Ltd. Through Moog’s own Microsoft Azure cloud-hosted blockchain, the order was validated and printed by a 3D printer in Los Angeles. By the time the aircraft touched down in L.A., the part was ready to be installed on-site.

Honeywell also enters the parts trade

Moog is not the only actor in the aerospace sector experimenting with blockchain solutions. Honeywell, another prominent player in aerospace, launched their blockchain platform, GoDirect Trade, last year.

Sathish Muthukrishnan, chief digital and information officer at Honeywell Aerospace, told Cointelegraph that the platform aims to make it easier for airlines, air transport and business aviation customers to access new and used aircraft parts. GoDirect Trade is Honeywell’s in-house solution to the supply chain issues that impede the aerospace industry. Muthukrishnan explained:

“On GoDirect Trade, Honeywell is using blockchain technology to ensure every listing includes images and quality documents for the exact part being offered for sale, giving the buyer confidence about purchasing the part. In addition, every part on GoDirect Trade is immediately available for sale and shipping.”

According to Muthukrishnan, blockchain can not only be used to help supply new parts after a piece has broken or worn out, but also to crack down on poor quality or counterfeit parts entering the market:

“We are working to create a digital engine log book that would revolutionize the way maintenance on an aircraft engine is tracked. We are also nearing the launch of a new partnership that would leverage our blockchain to greatly reduce the possibility of counterfeit aircraft parts hitting the open market. It is worth noting that blockchain can improve traceability throughout the entire value stream of making a certified part, not just the 3D-printing aspect.”

For Muthukrishnan, the cumulative efforts to implement the technology at Honeywell are an attempt to engineer a greater connection between 3D printing and blockchain:

“We see all our efforts in blockchain to date as building blocks to connect blockchain to 3D printing and additive manufacturing. While we can’t go into specifics into how we’re doing this right now, we believe there is strong potential for both Honeywell and the aerospace industry in connecting additive manufacturing and blockchain. The aerospace industry has the potential to benefit from a combination of 3D-printed parts and blockchain technology.”

Ernst & Young Global blockchain lead passionate about 3D printing

For many, the fate of blockchain and crypto are intertwined. With critics fiercely divided over both technologies as a whole, it’s hard to keep track of how far along development and adoption has progressed, if at all. But a milestone development in the last 18 months has been the increased interest and experimentation from institutional entities.

The foray into the sphere by industry giants is not limited to stablecoins and over-the-counter trading. Paul Brody, Ernst & Young’s global blockchain leader, confessed to Cointelegraph that 3D printing is a personal passion of his.

Brody has both worked on a number of key reports and given speeches on the topic. In a conversation with Cointelegraph, he said that he believes there are a number of actionable use cases for the technology regarding 3D printing and intellectual property rights:

“Early on there was some misconception that blockchain could be used to protect IP, and that’s not quite correct. Blockchain is a great tool for distributing, managing, and paying (or being paid) for sharing IP, but it’s not an anti-piracy tool. The way I have to see 3D printing is that it is the manufacturing equivalent of general purpose computing. In the world of General Purpose Computing, any computer can pretty much do most tasks (like the cloud). With 3D printing, we are gradually getting towards something that looks like a manufacturing cloud — and a distributed one.”

For Brody, the massive leaps that humanity made during the industrial revolution are a useful example to learn from when assessing realistic expectations for emerging technology in the modern world. For example, Brody outlined that great industrial breakthroughs like the steam engine needed information technology to scale. The rail and telegraph systems are another perfect combination. He added:

“3D printers will enable distributed manufacturing, and in principle, I believe distributed computing will go hand in hand with that for scaling. From designs to manufacturing to payment, 3D printers are likely to become smart, connected devices in IoT networks. I think you will be able to purchase designs, raw materials, and printing capacity through blockchains and then access networks of distributed manufacturing systems, as one example.”

It’s no secret that blockchain is subject to criticism, as any emerging technology rightly should be. Aside from scalability and the huge amount of energy required to power the technology, perhaps the most important concern is the cost of its implementation.

Brody outlined his view to Cointelegraph that while the cost may seem prohibitive to businesses at present, the fact that most 3D printers are already equipped with the smart technology necessary to connect to blockchains means that over time, the associated financial burden will shrink and decentralized networks will grow:

“In aggregate, blockchain-based systems are likely to be cheaper than centralized systems in the long-run as smart devices do more to manage themselves and depend less on centralized servers. The stage is still a ways off because the overall blockchain infrastructure is still not very mature, but given that most 3D printers are already smart devices, connecting them to blockchains will not be too hard.”

Although EY and a number of other industry leaders are actively exploring blockchain, Brody admits that, as of yet, there is no overwhelming demand to combine blockchain and 3D printing. Nonetheless, Brody thinks that “we’re getting very close on the public blockchain side to the point where adding blockchain interactions to 3D printing systems is easy enough that it can start to scale.”

For Brody, 3D printing is something that has the power to empower business and diversify industry. Having worked on a number of detailed reports for both IBM and EY on 3D printing, Brody emphasized that a new swathe of businesses are only a short while away from being able to implement the technology — a move which could drastically change the economic environment:

“I believe that 3D printing, as it matures, will have a tremendous impact on industries.”

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EY Global blockchain lead supports blockchain in 3D printing: “I believe that 3D printing, as it matures, will have a tremendous impact on industries”

ECB Money Printing Is ‘Rocket Fuel’ for Bitcoin Price, Says Pompliano

ECB Money Printing Is ‘Rocket Fuel’ for Bitcoin Price, Says Pompliano

Morgan Creek Digital Assets co-founder Anthony Pompliano says the European Central Bank’s expected dovish turn will be “rocket fuel” for Bitcoin

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Morgan Creek Digital Assets co-founder Anthony Pompliano says the European Central Bank (ECB)’s expected dovish turn will be “rocket fuel” for Bitcoin.

In a tweet posted on July 26, Pompliano commented on a fresh Bloomberg article investigating the ECB’s imminent policy moves — potentially including interest-rate cuts and renewed quantitative easing — designed to boost a faltering Eurozone economy. He said:

“ROCKET FUEL: They’re going to cut rates and print money right as we march towards the Bitcoin halving. Buckle up. This will be wild ?”

Pompliano had notably recently cited bitcoin’s halving — the reduction of mining rewards in half in May 2020 — as being one of the largest drivers of Bitcoin’s predicted price appreciation. His forecast is that the coin will hit $100,000 by the end of 2021. 

Bloomberg’s article cited ECB President Mario Draghi’s recent comments indicating the institution’s intent to deliver another round of monetary stimulus this September. Notably, the ECB head stated that “on the inflation front, we don’t like what we are seeing […] That’s very important.” 

Central bankers, Eurozone woes

The ECB president said he anticipates that contractions in Euro area manufacturing could contaminate the services sector, in part due to global trade tensions. While dismissing the prospect of a broad recession, he stated that consumer-price growth had fallen short of the ECB’s goal of just below 2% — justifying calls for significant support.

The ECB’s Governing Council has also added a crucial line to its “commitment to symmetry” statement, which Bloomberg notes reflects an openness to prolong stimulus to elevate price growth for some time:

“The Governing Council has tasked the relevant Eurosystem Committees with examining options, including ways to reinforce its forward guidance on policy rates, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.”

One Danske Bank economist told Bloomberg he expects 20 basis points of rate cuts from the ECB and more QE, adding: “It’s a matter of when and how ECB will act, no longer if.”

The United States Federal Reserve is meanwhile expected to cut interest rates next week, while Turkey has just introduced the biggest interest-rate cut since at least 2002. Across the globe, Australia’s central bank has also signalled it is likely to further ease policy.

As recently reported, the head of global fundamental credit strategy at Deutsche Bank has remarked that central banks’ dovish policies are positively impacting “alternative” currencies such as bitcoin while hurting investment banks.

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Morgan Creek Digital Assets co-founder Anthony Pompliano says the European Central Bank’s expected dovish turn will be “rocket fuel” for Bitcoin

Buy Bitcoin? Trump Says US ‚Should Match‘ China’s Money Printing Game

Buy Bitcoin? Trump Says US ‚Should Match‘ China’s Money Printing Game

Belligerent currency manipulation tweet from Trump bolsters the argument for crypto as a safe haven asset

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United States President Donald Trump has proposed the U.S. should ‘MATCH’ Chinese and Euoropean currency manipulation, sparking a dip in the greenback’s value. 

The president shared his thoughts in a tweet published on July 3:

“China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”

The renewed attack comes despite the fact that the Trump administration formally stopped short of accusing China of devaluing its currency to gain unfair trade advantages just two months ago.

On crypto twitter and Reddit alike, commentators were quick to note that in light of this “race to the bottom” monetary policy, Trump’s tweet is just about tantamount to a “direct order […] to buy bitcoin.”

Trump Fed board nominee Judy Shelton had tweeted just the preceding day that she would “strive to support the U.S. pro-growth economic agenda with the appropriate monetary policy.”

In a tweet published July 3, eToro analyst Mati Greenspan affirmed his belief that the influence of macro-economic trends on bitcoin is already a reality, stating:

“My understanding is that central bank policy is the biggest driver of all markets, including crypto.”

The president’s provocation sent new waves through Europe, with one foreign exchange strategy expert telling CNBC that he fears the administration could slap on ‘countervailing tariffs’ on the E.U. auto sector, justifying it as a response to what the Commerce Department deems to be certain countries’ artificial currency depreciation. 

Other currency strategists have remarked on the unexpected timing of the renewed attack on China’s currency policy, arguing that the yuan has not apparently been manipulated for the past couple of years. 

With politicians weaponizing national fiat currencies to gain the upperhand in trade, the argument for crypto as a safe haven asset appears more robust than ever.

In remarks earlier this week, Morgan Creek Digital Assets co-founder Anthony “Pomp” Pompliano predicted bitcoin (BTC) would hit $100,000 by the end of 2021, citing the current climate of global instability as a major driving factor.

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Belligerent currency manipulation tweet from Trump bolsters the argument for crypto as a safe haven asset