As U.Today reported earlier this week, the US central bank, the Federal Reserve, took to cutting down the interest rate and printed $53 bln as part of its QE initiative. Last time, a QE from the Fed took place during the financial crisis of 2008.
Money becomes cheaper as more of it flows into economy, and this is one of the major reasons why Bitcoin is considered more stable than fiat currencies – it may be volatile but it is protected from inflation since there cannot be more Bitcoins than the amount allowed by the mathematical algorithm.
On Friday, the co-founder of Morgan Creek Digital, an investor and crypto podcaster Anthony Pompliano tweeted that the Fed Reserve plans to continue with QE today and print $75 bln more.
Coupled with the upcoming Bitcoin halving next year, this gives more reasons to believe that the BTC price may surge soon.
Experts are positive that Bitcoin will hit $20,000 soon
Earlier this week, U.Today reported that the BitMEX CEO Arthur Hayes stated that the market should be prepared for BTC to surge to $20,000 since the Fed Reserve plans to take to its QE tool and print $53 bln.
Earlier this year, in summer, when the ECB also conducted quantitative easing (QE), Anthony Pompliano called this act a “rocket fuel” for Bitcoin and stated that as we are moving closer towards the Bitcoin halving, any QE will provoke a BTC price surge.
The approaching Bitcoin halving
Bitcoin mining rewards are cut by two every four years, thus the algorithm automatically makes Bitcoin a more scarce asset. The previous halvening took place in 2016, right before BTC reached its ATH of nearly $20,000.
The next halvening is to occur in May 2020 and crypto experts, along with investors are looking forward to that, hoping that the price of ‘digital gold’ will at least catch up with the ATH of 2017 or even go much higher than that.