Ian Balina, the founder of CoinMetrics, is sounding his bullish horn and vouching for Bitcoin when the coronavirus pandemic spread, forcing central banks—and specifically the US Federal Reserve, to react aggressively to prop their banking systems.
Fund Rates drop to 0.25% and a $900 billion Stimulus announced
Jerome Powell, Sunday, announced an emergency cut, slashing inter-bank funding rates to 0.25% and lengthened loan terms to 90 days.
“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. We will maintain the rate at this level until we’re confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals.”
The move which came as a surprise had adverse effects on the US Stock Market. The Dow Jones index fell 900 points on opening, an unexpected move.
This is despite the $900 billion stimulus that the central bank announced, saying they will embark on Treasury bond purchases and those of Mortgage-Backed Securities.
Time for Bitcoin (BTC), Rate Cut won’t prevent Lock-downs
In the wave of this panic, Ian took to Twitter expressing his bullishness and the benefit of holding Bitcoin.
Bitcoin is autonomous, controlled by the masses, and is decentralized. The coin, despite posting huge losses in the last two weeks, near halving, remains an effective tool for not only transferring funds but for storing value.
“Morgan Stanley told the world to sell the US dollar for other currencies. Bitcoin was designed for times like this. Recession, quantitative easing, inflation. No longer do you need to depend on central banks. Take power back and become your own bank.”
Morgan Stanley told the world to sell the US dollar for other currencies. Bitcoin was designed for times like this. Recession, quantitative easing, inflation. No longer do you need to depend on central banks. Take power back and become your own bank. #bitcoin #crypto
— Ian Balina (@DiaryofaMadeMan) March 16, 2020
At this time of panic and central banks announcing measures to either prevent further spread of the virus and to shore their respective economies, the reception of this emergency fund rate has been negative.
This disapproval by all means strengthens the case for Bitcoin and alternative coins.
The reduction of rates, one critic said, “don’t lower infection rates, they don’t make it easier to go to work, it doesn’t make normal people stop panic buying random shit, and it doesn’t make people more likely to go outside and buy stuff.”
At pixel time 12:30 GMT+3, Bitcoin was trading at $4,856, down seven percent in the last trading day.