The situation of Bitcoin and the United States Dollar

The situation of Bitcoin and the United States Dollar

Let us check the situation for Bitcoin. The upcoming speech from the Federal Reserve will focus on rising inflation. That is what many forecast. Winklevoss says that this is only good news for Bitcoin and the United States dollar.

Entrepreneur Tyler Winklevoss believes that Bitcoin (BTC) gets most of its price support from the Federal Reserve.

In a tweet on August twenty-five, the Gemini exchange co-founder argued that the policy of the Federal Reserve is and will continue to be bolstering fortunes in Bitcoin.

Winklevoss shared his thoughts. He thinks that the reason for that is the fallout from coronavirus containment around the economy of the United States will mean that the central bank would accidentally make Bitcoin more appealing and the United States dollar less so.

The Chairman of the Federal Reserve is Jerome Powell. On Thursday, he will be delivering a speech that commentators expect will contain an announcement on letting inflation rise dramatically.

Bitcoin

Bitcoin has an unalterable issuance and fixed supply. That makes Bitcoin highly attractive.

Under the leadership of Jerome Powell, Winklevoss wrote, the Federal Reserve continues to be the biggest booster of Bitcoin.

Anticipation around the Federal Reserve inadvertently plugging safe havens such as gold and Bitcoin has been building. Seemingly in line with the rises in the balance sheets from central banks, both assets see price surges.

Edward Yardeni is the president of Yardeni Research. He said, earlier this month, that heightened inflation targets will be ‘wildly bullish’ for precious metals.

Interest rates remained near zero for five years. That is what Bloomberg is reporting. Nevertheless, the potential for more prolonged periods is not ruled out.

That will repeat the aftermath of the Global Financial Crisis of 2008. Until the end of 2015, it saw rates being unchanged, at near 0%.

Ex-chief House economist Jason Furman told the publication that he will not be surprised if interest rates will still be zero five years from now.

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