The US Federal Reserve’s (Fed) aggressive easing might support Bitcoin’s bullish price trend at least up to 2020. Meanwhile, the cryptocurrency might also get a parallel boost from the upcoming halving event.
Fed Cuts Interest Rates for First Time in Over a Decade
At the latest meeting in July, the Fed’s Federal Open Market Committee (FOMC) cut its key interest rate by 0.25% to 2.00-2.25%. This was the first interest rate cut since December 2008. At that time, the American central bank reacted to the massive financial crisis caused by the housing bubble.
Generally, when a central bank cuts its benchmark interest rate, the national currency becomes cheaper. It happens because investors find it less attractive for deposits. Consequently, cash holders turn to investments rather than savings, and local businesses get a major boost.
Besides the stock market, store of value (SoV) assets are also big winners of rate cuts. Cryptocurrencies like Bitcoin fall in this category too.
While Bitcoin might be a great medium of exchange…