It has been no secret that central banks around the world are struggling to keep their economies going. As governments continue to find their way in what has been a deteriorating financial and geopolitical situation, it has become necessary for Central banks to implement every available tool and measure to ensure the economy does not go down. While so far, for many it seems to be working, Germany’s Deutsche CEO has warned that Central banks are running out of conventional ways to “cushion” the blow of a real economic crisis.
Christian Sewing gave this warning while speaking at the Sibos banking conference in London. Sewing further explained that while organizations such as the Fed and the ECB have implemented measures, they are running out of conventional ways to do so. Furthermore, they are faced by an “extraordinary macroeconomic situation that is very hard and difficult to predict, and potentially making this whole thing even more volatile.”
As we have reported, both the Fed, the ECB and even the People’s Bank of China have all introduced new monetary policies. In all the cases, it has been in an effort to mitigate an economic crisis or stimulate a dying economy.
For Bitcoin and its holders, this is good news that could largely see adoption grow. Bitcoin remains the best safe-haven asset in times of political and/or economic turmoil. In these uncertain times, it seems like the best asset to hold and ensure that in case of a financial crisis, one is protected.
Even more so following the recent activities portrayed by central banks around the world. It is a clear sign through their activities that the world is staring at a financial crisis, one that might be as bad as witnessed in 2008.
The warning by Sewing further shows that time is running out and soon, if there is not a change in world and government trends, the world is facing a major financial crisis.
While Bitcoin might be set for a major boost in the months to come, currently, the digital asset is facing a rough ride. With the end of the week, comes the end of one of its worst ones in recent months. For some time on Thursday, the asset had dipped below $8,000 but would find strong support above $7,900. Some analysts are still predicting further drops and calling for a bottom at the $7,500 support.
The bulls will look to break above the $8,500 resistant position during the weekend before setting new highs for the coming week. If the bulls can catch a lucky break in the days to come, they can take Bitcoin back above $10K at the beginning of October before setting out for a new year high.