The Federal Reserve recently announced a series of emergency measures to help the US economy weather the COVID-19 storm. But did the Fed just destroy the crypto market?
The Fed’s announcement includes a number of measures, such as increasing its balance sheet, cutting interest rates, and providing liquidity to the markets. In addition, the Fed has announced that it will be purchasing $500 billion of Treasury Securities and $200 billion of mortgage-backed securities.
The market reacted positively to the announcement, as stocks rose and the US dollar strengthened. But what does this mean for the crypto market?
Cryptocurrencies are often seen as a hedge against market volatility, so when the market is volatile, investors often turn to cryptoassets. But with the Fed’s announcement, the US dollar has become stronger, making it less attractive to invest in cryptocurrencies.
Additionally, the Fed’s announcement has had a direct impact on the price of Bitcoin. Since the announcement, Bitcoin’s price has dropped by more than 10%.
So, did the Fed just destroy the crypto market? It’s hard to say. But what is clear is that the Fed’s announcement has had a direct impact on the price of Bitcoin, making it less attractive to investors.
