The past few weeks were filled with mixed excitement as the Bitcoin halving, speculated to impact the price of BTC, was eagerly awaited.
Interestingly, the halving was of no significant impact on the price of the largest crypto asset. This has giving birth to numerous speculations by investors and crypto traders.
In a recent analysis by Stack, it was inferred that the next Bitcoin’s pump could be a negative interest rate.
As stated by the report, June Federal Funds Future are looking forward to the possibility of negative interest rates, this is because cut-rates are already been offered by European and Japanese central banks.
At this moment, when the global financial industry is struggling to stabilize its economy, people are not expected to spend their capital. Hence, in other to encourage spending, it becomes necessary to introduce negative interest rate, usually used in a weakened economy.
An estimated US$3.5 trillion is being printed and injected into the monetary system by the US Fed in a bid to fuel the financial bubble further. This action, however, could potentially bring about a huge devaluation and a pivotal deflation of fiat currency.
Therefore if there happens to be a continuous turndown of the traditional asset class, then there is a likely possibility that investors will begin to turn their attention toward assets like Bitcoin and Gold.
The fact that these assets are said to be uncorrelated to larger markets is a major factor that will influence people’s interests.
Although, assets in the cryptocurrency market bounce bank fast, there is a high chance that if there happens to be another crash, Bitcoin would follow the traditional market again.
As at present there is no clarity on how the market will react, hence the future is totally uncertain, however active price volatility has made Bitcoin interesting as we approach the 2nd phase of Q2 2020.