The United States Central Bank has put forward that it may potentially in the very near future cut interest rates, and this has been tied closely as one of the reasons for the recent surge in the price of Bitcoin (BTC), explained Deutsche Bank executive Jim Reid, in an interview with CNBC on June 26.
In a speech made by Federal Chairman, Jerome Powell, stated that the central bank is considering a cut of interest rates due to the current economic uncertainty and inflation risks.
As a result of this, the US dollar dropped rapidly compared to other fiat currencies globally. It recorded a three month low against the Euro (EUR).
Reid, who is head of the Global Fundamental Credit Strategy at Deutsche Bank, commented,
“If central banks are going to be this aggressive, then alternative currencies do start to become a bit more attractive.”
Reid hold a rather negative stance towards the central banks, criticising them of printing money continuously will only lead to the end of paper money.
Meanwhile, as all this is going on, Bitcoin (BTC) has continued to hit new 2019 records, and its market cap has surged well above $220 billion, adding in a dominance rate of more than 60 percent for the first time since April 2017.
Morgan Creek Founder and well-known Bitcoin Bull, Anthony Pompliano, tweeted earlier this month,
“Add in the May 2020 Bitcoin halving and you have the perfect storm.
Make BTC more scarce.”
Currently the price of BTC, at time of press, is sitting at $112,955.08 +2.29%.