As the United States Fed prepares to issue additional stimulus and economic relief efforts, assets like Bitcoin and Gold are gearing up for yet another leg up.
How will the latest move to save the economy from a devastating depression impact these two, scarce, safe-haven assets in the days ahead?
Federal Reserve Delivers Somber News About Economy, Pledges More Stimulus If Necessary
This morning, Federal Reserve Chairman addressed the world via a webcast and revealed that the United States is likely to face an “extended period” of poor economic growth and incomes as the world recovers from the impact of the lockdown.
Powell says that although the United States’ response has been “swift and forceful,” prior stimulus packages and the ones planned in the future will take time to gain momentum. The Fed Chair urged consumer spending to further combat any additional economic downturn, and pledged that the Fed would use more of its money-printing power if needed.
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While stimulus efforts taking time to gain momentum may be a challenge for the Fed and the US economy, it is a boon for safe-haven assets like gold and Bitcoin, which have recently reached pivotal resistance levels.
The two assets are limited in supply, making them an ideal hard asset for capital to be stored during periods of inflation. And with more money being printed to prevent further economic downturn, gold and Bitcoin are set to show their true value in the months ahead.
Economic Downturn and Inflation Due to Stimulus Could Take Bitcoin and Gold to New ATH
Bitcoin and gold, however, are both dealing with critical overhead resistance preventing them from rallying further, even despite the turmoil the economy is facing.
Stimulus checks are going toward the assets, but profit-taking at these key levels after a strong rally over the last two years is keeping prices at bay and stopping a further breakout.
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Gold is facing former resistance from all-time high trading ranges set at the peak of the last recession. At that time, gold prices skyrocketed to a peak of $1,900. Analysts are now anticipating the precious metal to reach prices of $2,000 to $3,000 an ounce before a bigger pullback in the back half of the year.
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Bitcoin, however, is trading just above $9,000 after a handful of attempts to breach over $10,000 throughout 2020 so far. The asset just had its “halving” that saw the already scarce supply further reduced.
The latest news coming from Powell and the Fed could have the potential to push these assets beyond these hard-to-break resistance levels and trend towards setting new all-time highs.
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Bitcoin popped to fresh quarter highs Wednesday as the US Federal Reserve warned of a “medium-term” economic disaster. The central bank decided to maintain its benchmark lending rates near zero while calling for further stimulus support from Washington.
If I told you at the beginning of the year the United States would be handing out checks worth over $1,000 to every citizen and it would find its way into Bitcoin, you would've laughed me out of the rThe post Bitcoin in, dollars out: Fed stimulus shows who wants what appeared first on AMBCrypto.
Bitcoin maximalist and entrepreneur Jimmy Song says that US citizens will have to pay a high price for the stimulus checks promised by Donald Trump and the Fed
Bitcoin and ether fell slightly Thursday as traditional markets climbed on additional stimulus measures by the U.S. Federal Reserve and Bank of England.
Another 6. 6M Americans filed for jobless claims in the past week, exceeding forecasts. The Fed has responded with another $2. 3 trillion in stimulus funds. The macroeconomic outlook for the United States looks bleak, as another 6.
On Friday, U. S. bureaucrats passed the 2020 stimulus bill, which has become the largest cash injection package ever created by the federal government. However, following the bill making it through the Senate and House, Republican representative Thomas Massie told the public the stimulus bill bolsters a shroud of secrecy surrounding the Federal Reserve.
Yesterday (March 24), the Whitehouse unveiled a new emergency stimulus package to cushion the US economy against the coronavirus pandemic. According to White House’s top economic advisor Larry Kudlow, the bailout package is expected to come to roughly $6 trillion.
US stocks are swinging between gains and losses today after the announcement that White House and lawmakers have reached an agreement on a $2 trillion stimulus package to combat the novel coronavirus.
The flagship cryptocurrency, as well as the broader stock market, spiked up after the Federal Reserve announced a slew of new stimulus programs to provide relief from the recent downturn....The post The Fed’s Stimulus Plans Put Bitcoin Back in the Spotlight appeared first on Crypto Briefing.
On Sunday, the U. S. Federal Reserve slashed the benchmark short-term rate by 100 basis points bringing it to zero. In addition to the rate cut, the Fed promised $700 billion in bond purchases and eliminated all reserve requirements for smaller financial institutions.
In one of the craziest weeks in financial market history, the Fed has announced emergency economic stimulus to counter negative impacts from Covid-19. Shortly after, Bitcoin price bounced briefly above $8,900 before correcting.
As so-called “doomsday prepping” grows in popularity thanks to news of coronavirus lockdown in Chinese cities, red flag gun laws and rampant Fed stimulus in the U. S. , preparedness enthusiasts are asking about the viability of bitcoin in a SHTF situation.
On January 13, the New York Federal Reserve gave $60. 7 billion to eligible private financial institutions by leveraging U. S. Treasurys and agency securities. With all the stimulus given to financial institutions since September, it hasn’t relieved the stress of economic uncertainty.
By CCN: If you think the Dow Jones Industrial Average has had a good run, you haven’t seen anything yet. President Trump wants to see interest rates slashed by 1%, which has the potential to unleash further gains in an already historic bull market for stocks.
Complaining about the Federal Reserve’s approach to monetary policy has been one of President Donald Trump’s favorite activities. However, as talk of recession picks up after a temporary inversion of the yield curve, Jerome Powell’s hawkish approach will be a tremendous asset to the U.
BTC’s price lost its all-time high of $18,000 as FTX fiascos continued to affect its price. BTC’s price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors.
BTC’s price loses its $18,000 all-time high support as the price trades to a region of $17,000 before bouncing off this region. BTC’s price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors.
BTC’s price needs to stay above $20,500 for the price to have a chance to rally high to a region of $22,500. BTC’s price continues to trend, creating a more bullish bias as the price aim for $22,500, where the price could face resistance.
BTC’s price needs to rally high as the price continues to stall in its price movement despite the market looking green across boards. BTC’s price continues to trend, creating a more bullish bias as the price aim for $22,500, where the price could face resistance.
BTC’s price slowed down after showing so much strength as it rallied to a high of $21,000 but got rejected as the price rallied downward. BTC could suffer retracement as the price breaks below the crucial support area, holding the price off from sellers with hopes of a rebound.
BTC prices continue to trend downwards as prices remain bearish, with price trading on critical support. BTC trades below 50 and 200-day Exponential Moving Average as price struggles to regain bullish signs.
BTC price trades below key resistance as prices get rejected under daily EMA. BTC’s monthly candle closes with so many mixed feelings ahead of October. The price of BTC must close above $21,500 to renew bullish sentiments.
