- Central banks aggressiveness pushing more institutions and individual to Bitcoin and other cryptos.
- The Fed is considering cutting interest rates in spite of economic uncertainty and inflation risks.
An executive with Deutsche Bank, Jim Reid in an interview with CNBC on June 26 connected the current surge in the price of Bitcoin to the aggressiveness felt from the central banks. Reid is the head of Global Fundamental Credit Strategy at Deutsche Bank. He stated in the interview:
“If central banks are gonna be this aggressive, then alternative currencies do start to become a bit more attractive.”
Reid was talking with regards to the comments by the Fed’s chair Jerome Powell who said on June 25 that the Federal Reserve Bank was looking into cutting of interest rates, although there are preexisting issues like economic uncertainty and inflation risks. This lead to a significant drop in the US dollar (USD) in relation to other currencies, for example, the USD tanked to a three-month low against the euro (EUR).
Also, read 1. Cryptocurrency market update: Bitcoin Races to new 2019 highs past $12k; Ethereum and Ripple unbothered
2. Ethereum market update: ETH/USD breaks away from Bitcoin pushing new 2019 highs
On the other hand, Bitcoin continues to soar to new yearly highs. The market settled above $12,000 today supported by a growing market capitalization that hit $226 billion. Moreover, Bitcoin dominance on the crypto market hit a year high around 615 since April 2017.
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