As the United States Federal Reserve continues financial stimulus measures, market pundits see the positives for the cryptocurrency space.
According to a report from Reuters, the Federal Reserve plans to continue supporting the American economy through a variety of different measures as the country waits on the 2020 US election results and continues its battle against the COVID-19 pandemic.
This comes after the Federal Reserve’s latest meeting on November 5 to discuss ongoing fiscal policies amid ongoing turbulent times. Federal Reserve Chair Jerome Powell addressed a news conference following the meeting and provided some insights into the monetary planning for the next few months.
Powell made no mention of the elections and the possible implications it would have on existing monetary policy, but said that the Federal Reserve would use a ‘full range of tools’ to prop up the American economy. Interest rates would also remain unchanged until employment rates recovered and inflation reached a target of 2%.
The US Central bank also indicated that it would continue to buy ‘at least’ $120 bln of government bonds per month – in what the Federal Reserve believes to be the right amount of economic support.
This continued ‘quantitative easing’ has been the subject of much speculation and has been highlighted as a key reason for Bitcoin’s rise in value this year.
Winklevoss, Novogratz – read between the lines
Gemini cryptocurrency exchange cofounder Tyler Winklevoss reacted to Powell’s announcement by suggesting that the continued fiscal policy of the Federal Reserve was a clear signal to buy more Bitcoin.
Winklevoss and his brother Cameron have been long-term proponents for Bitcoin adoption and recently laid down a compelling argument which details why BTC will be worth over $500k per coin in the future.
Meanwhile renowned investor and Galaxy Digital founder Mike Novogratz provided a similar commentary on the back of Powell’s address and the Federal Reserve’s latest meeting.
Speaking on CNBC’s Squawkbox, Novogratz said that the Central Bank’s propensity to continue fiscal stimulus would be a boon to the cryptocurrency markets.
“We are in a bull market with Bitcoin. The Fed will continue to print. The crypto world has an expression, you know the Fed goes ‘brrrrrr’, it is that printing press going on and on. And so, less fiscal, more Fed, good for crypto.”
“I think there’s a bigger story with crypto. We have crossed the rubicon in its adoption, you’re going to see every bank, every tech company getting involved and I think we’re at the start of a really big bull market here,” Novogratz said.