FED Under Pressure To Cut Rates As U.S Stares At A Recession, Fuel For BTC?

BTC dollar

The Coronavirus continues to be a hot topic of discussion around the world. Particularly in China and the US, there has been an emphasis on its effect on the economies. The two largest economies have been shaken and the effects are being felt in investor’s wallets. The U.S stock is currently having one of its worst runs. The drop and the continued fear has prompted many to look unto the FED to cut interest rates. Such a move in the near future could see Bitcoin come out soaring.

U.S Is Headed For A Recession

The Coronavirus promises to leave the economy on its knees. Led by market drops, the economy is struggling. And as the markets drop, the chances of an interest rate cut go up. MarketWatch notes that the probability of at least two rate cuts before December is at 78%.

But, it remains too early for the FED to make this call. As analyst The Wolf Of All Streets notes, this would be a dangerous move as the full impact of the Coronavirus is still unknown.

While this is true and it remains too early to make the cut, it remains a fate that the U.S cannot escape. As the epidemic prolongs, China will remain on lockdown and will continue to affect the American investor and far more consumers. The country is one of the biggest producers and as long as factories and supply chains are locked, this will shake the global economy.

There is further concern that there could be an outbreak in the U.S. This was confirmed by The Centers for Disease Control on Tuesday. The agency noted that the disease would inevitably spread to the U.S. This will further slow the economy and see FUD reach an all-time high.

The FED is certainly destined to cut interest rates in the weeks or months to come. This will help stimulate the economy and get the U.S back on track.

Bitcoin is set to come out as a winner. As the FED cuts interest rates, this will see more money printed and the currency further devalued. Bitcoin has been hailed as an asset that cannot be manipulated this way, hence continuing to add value over time. Historically, Its popularity hits the roof after FED interest cuts.

Silver Lining?

Israeli scientists today announced that there would be a Coronavirus vaccine in the next three weeks. This will reduce FUD and see more stability and sanity come back to the markets.