Bitcoin has been struggling for the last few weeks. One major concern for its drag has been its weakened technicals. Bitcoin has lost in dominance as well as trading volume. With the asset currently below 10K, it is in dire need of a positive trigger.
Now, the U.S government might have just handed it just that. The U.S Federal Reserve chairman is this week expected to announce the first cut in US interest rates since 2008. This will see the government print out more money giving Bitcoin credibility and fuel to rise.
With this move, the Federal Reserve is looking for insurance against growing trading tensions and protection from a weakening global outlook. Notably, this cut is the first in nearly a decade when the world was hit by a financial crisis.
So, is this a sign that we could be headed that way? This certainly can’t be discounted. Some of the largest economies in the world are in turmoil. U.S and China are locked in a trade war that has seen both economies suffer.
Britain on the other side of the ocean is in the middle of Brexit which could easily see its economy disrupted. And now, the U.S is adding fuel by interest rates cut.
Bitcoin has always been a safe haven during any political or economic turmoil. As citizens of these countries look for security in Bitcoin, they could trigger the next rally.
Speaking on the FED cutting rates, analyst, Anthony Pompliano tweeted this a few days ago:
HERE WE GO.
US GDP last quarter: 3.1%
US GDP this quarter: 2.1%
Economy s l o w i n g down only means one thing — cutting rates and printing money!
They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume.
Long Bitcoin, Short the Bankers!
— Pomp 🌪 (@APompliano) July 26, 2019
Bitcoin (BTC) Price Update
Bitcoin continues to hold above $9,500 after dropping to this level on Saturday. Prior to the drop, the coin had dragged itself above $10K but could not hold above it. On Sunday, the digital asset tested the $9,200 positions before climbing back above $9,500.
At the time of press, Bitcoin is trading for $9,575, with dominance around 64.5%. In trading volume, the asset is still around $15 billion.