Bitcoin Price Rises as Investors Anticipate More Money Printing

Bitcoin Price Rises as Investors Anticipate More Money Printing

Bestanews-Bitcoin Price Rises as Investors Anticipate More Money Printing The price of Bitcoin BTC has gone up by 2% in the last twenty-four hours, from $61,650 to $7,250. It has come back after two days of trying and failing to break through the $61,500 mark. The price of Bitcoin might change after the U.S. spot Bitcoin exchange-traded fund (ETF) moves, which saw $100 million leave the fund over four days. The fact that things are going up right now is proof of this. This is clear because prices have stayed above $62,500.

Optimism for Cryptocurrencies Rises Amid Global Economic Measures

There are a few things that have made people feel better about cryptocurrencies. The first is China’s announcement that it will issue 138 million dollars in long-term bonds to boost the economy. It was confirmation of the fact that governments are willing to take on greater risks of recession, even though this was already known since the news in March. This was done because data showed that in April, China’s overall credit fell for the first time in seven years.

Zou Wang, an investment director at Shanghai Anfang Private Fund Management, says that the market is now expecting China’s central bank to provide more cash. This could include lowering interest rates. Reuters was given this information. These steps would make the problems that have come up because of the recent loose monetary policy actions taken by the Federal Reserve (Fed) of the United States of America worse. In March, the US had its first increase in monetary supply in two years.

Potential Long-Term Inflation Risks and Investor Shifts to Bitcoin

At first glance, putting more money into the economy might look like a good plan. Over time, though, this could make inflation go up, especially if people and businesses wait to buy things and spend. As investors in fixed-income stocks become more aware of how their returns are failing to keep up with rising prices, they may become more interested in scarce assets like Bitcoin.

It’s possible that investors are getting ready for a situation that will continue in the future: governments will have to keep giving out cash to keep the economy from falling apart. Some might say that more cash in the market would be good for the stock market, but businesses lose out when interest rates are high because their capital costs go up. If you want to refinance, any loan that was made in the last sixteen years will have much higher interest rates.

According to Yahoo Finance, people working for the Federal Reserve said last week that they thought interest rates would stay high for a long time. One famous quote from Neel Kashkari, Chair of the Federal Reserve in Minneapolis, is I think it’s much more likely we would just sit here for longer than we expect.” Austan Goolsbee, Chair of the Federal Reserve in Chicago, said, “I think now we wait.” At first glance, this strategy seems to go against the need for more cash on hand, but it is actually designed to delay the start of inflationary forces.

Federal Reserve Policies, Bitcoin Volatility, and Rising Crypto Sentiment

The main goal of what the US Central Bank does is to get people and companies to borrow more money so that consumer markets can grow and more jobs can be created. So that prices don’t go up too much, the Federal Reserve won’t say how much of the loan money will be spent on expensive things instead of being used to boost the economy. People who buy Bitcoin are worried that the Federal Reserve might not be able to do a soft landing. It looks like it’s too early to fully look into these risks, though.

Besides that, Bitcoin’s value changed on May 13 because of an unexpected event. People on social media know her as Roaring Kitty. She came back. Many people think that she was a big reason why the price of GameStop (GME) stock went up in 2021. This person hasn’t used the X social network in almost three years, but the Bitcoin community still thinks this person will have a big impact on them.

Growing Trust in Cryptocurrencies Amid Declining Confidence in Traditional Banking

People who buy cryptocurrencies think that people will feel better about them after recent government loans, like the one that saved Philadelphia-based Republic First Bank. This trend is getting stronger because people are losing faith in banks and regular banking. This is even more true now that banks have been saved by the government. People in this group who are investors think that these changes could make more people want to use cryptocurrency.

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