The Federal Reserve used its last bullet in its latest quantitative easing as it pumped an extra $700 Billion USD and dropped interest rates by 1.5 percentage points to zero – signifying its largest monetary policy control since the 2008 global financial crisis. While the fiscal injection was supposed to recover the stock market from the extended bearish run faced during this global COVID-19 pandemic, the markets have dropped even further – with the DOW Jones losing over 2000 points on market open on Mar. 16.
As the stock market continues to struggle on a largely inflated market, investors are looking for safer assets to put their money in times of the global epidemic. Gold has been a favorite go-to asset in times of economic meltdowns but as seen with the latest Google Trends data, Bitcoin (BTC) may arise to challenge the shiny metal.
Bitcoin surpasses ‘Buy Gold’ searches on Google
Since the crypto carnage on Mar. 11, the number of searches for Buy Bitcoin has been on an uptrend surpassing “Buy Gold” searches in the process. On Google internal metrics, “Buy Bitcoin” searches spiked to 95 as “Buy Gold” stood at 94. The explosive rise in BTC searches however shortly dropped to 57 and gold searches continued the rise to 100.
It literally updated minutes after.
Still an interesting development and worth tracking. pic.twitter.com/OfuRI7CjOJ
— f i l ₿ f i l ₿ (@filbfilb) March 16, 2020
A positive feeling is growing on the ‘safe-haven assets’ tab and with Jerome Powell, Fed Chair, stating the interest rate will remain at the current levels for the foreseeable future, could BTC benefit?
‘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.” – Jerome Powell.
Possible move to $6,100 key resistance?
BTC/USD showed signals of boosting back to pre-COVID19 fears immediately after the rate cuts and $700 Billion USD injection from the Fed, topping $5,900 USD. Currently trading at $5,138 USD, BTC/USD, a 16% hike from intraday lows on Mar. 16, a possible move to $6,100 USD resistance is on the horizon.
The top crypto is on its fifth straight green hourly candle, a move last seen at the start of the month, signaling a bullish reversal in coming days.