One of the 12 regional Reserve Banks in the US central banking system, The Federal Reserve Bank of St. Louis, have added four cryptocurrencies to its database. Bitcoin, its off-spring from a fork, Bitcoin Cash, Litecoin, and Ethereum are the four cryptocurrencies which were chosen and daily data on their prices will be listed on the Federal Reserve Economic Data (FRED) database.
The Coinbase index will also be included on FRED, which will show the performance of the four cryptocurrencies added. Under this particular index, FRED advised that users should analyze data by using the log scale, “given the volatility in the cryptocurrency markets.” Coinbase’s addition also adds a much significance to this feat, as it is one of the biggest crypto exchange in the world and the biggest in the US.
This news has given the crypto market a major boost it was so desperately in need of during this troubling times. Bitcoin the rest of the crypto market have had a month to forget, with prices falling significantly low, coupled with series of hack attacks on exchanges.
Investors were caught in an unfavorable situation and a major news such as this was what many needed to clear their head and hold on to the assets.
A US Federal reserve bank, recognizing cryptocurrencies is a positive addition to the progress of cryptocurrencies since cryptos have not been approved by central banks regardless of how often civilians use them as a medium of exchange.
The recognition of crypto by FRED signals how the thriving crypto market is extending its wings into legalized financial systems and also the fact that, institutional markets have had their eyes on cryptocurrencies for quite some time now especially, Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
FRED is seen as many as a key emblem of legitimacy and its association with cryptos makes them more advanced. It is known for its flexibility and user-friendly coupled with a large user base within the financial community. FRED is utilized by economic researchers as an asset for consumer prices indexes, US unemployment rate, oil exports, gross domestic product, interest rates, inflation rates, monetary aggregates and other financial information.
FRED will also help analysts in their trade and bring some sort of bond to the dissection of crypto products. The addition of this database will bridge the integration gap which existed between cryptocurrency products and prices with other trade analysis tools.
Bitcoin and the crypto market are now expected to experience a boom as this news means they are slowly moving towards public acceptance.
