- In an Aug. 1 research, analysts at QCP Capital stated that they were enthusiastic about the possibility of a September rate decrease by the US Federal Reserve for investors in Bitcoin and other cryptocurrencies.
On July 31, Federal Reserve Chair Jerome Powell and other officials opted to keep interest rates at their current levels, according to minutes from the committee’s meeting.
Powell and the Fed continued to implement stricter monetary policy for an additional month, holding interest rates between 5.5 and 6.5 percent while waiting for more encouraging economic data.
The FOMC minutes, according to QCP Capital, imply that the Fed is leaning toward dovish policies as the year nears its closing quarters. As stated by QCP analysts in a note dated August 1, a September decrease has been fully priced in.
In line with QCP, Jag Kooner, head of Bitfinex’s derivatives division, stated that a rate drop in September would increase market liquidity and boost positive momentum. Bitcoin 0.08% of a bitcoin More capital inflows would help Bitcoin and other cryptocurrencies that are seen as riskier investments since investors are looking for bigger returns outside of the stock market.
There is a lot of confidence in the market right now, according to Kooner, especially since even potentially bad news like the Mt. Gox distribution, the German government selling, and several recent large chain movements haven’t been able to significantly lower the price of bitcoin.
Adoption of Bitcoin is increasing
As a decentralized substitute for centralized systems that are distrusted, Bitcoin was developed. The most popular cryptocurrency is a hot topic when discussing national reserves and sovereign assets, fifteen years after its debut.
Prominent US presidential contenders, including Robert F. Kennedy Jr. and Donald Trump, have suggested setting up a sovereign Bitcoin reserve. The majority of such a move would come from America’s current $12 billion stockpile, with RFK Jr. advising the U.S. to purchase additional Bitcoin.
Should the United States move forward with this idea, it may serve as a model for other nations looking to include Bitcoin as a reserve asset. This might change the cryptocurrency environment overall and put more Bitcoin under government control.
While some supporters celebrate the development as the next phase in the acceptance of Bitcoin, detractors question whether government-owned Bitcoin treasures were ever intended by the notorious Bitcoin developer, Satoshi Nakamoto.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
