There has been a lot of talk about a possible recession in the next two years in the U.S. While a number of economists see this as a possible outcome, politicians and heads of financial institutions insists this is far from the truth.
They, however, with every decision seem to be hell-bent on devaluing the dollar and putting the economy in trouble. In their latest attempt, the Federal Reserve Bank has printed out $75 billion for commercial banks.
This has been done in the name of an emergency measure called “repurchase operation”. This allows the Reserve to provide banks with money overnight. In exchange, the banks have to pledge collateral like Treasury bonds and assets. Notably, this operation has not been executed since the financial crisis a decade ago.
Bitcoin, The Ultimate Safe Haven In A Financial Crisis
Every economist knows that this type of operation is what devalues a currency. Every Bitcoin enthusiast, on the other hand, knows that this is what makes Bitcoin unique.
It has a set supply cap that makes it impossible to flood the market and be devalued. Its production is also capped to one block every ten minutes making it predictable. Additionally, it cannot be manipulated by any third party.
With the FED looking like they are gearing up for a crisis, Bitcoin continues to become a viable choice for many investors. When the financial crisis hit a decade ago, no one saw it coming, and even if predicted, there was no clear asset that would shield investors.
Because of the chaos, Bitcoin was created and ever since has proven to be the ultimate asset against a similar crisis. In the next year, the asset is set to undergo the ultimate test. And it’s one that is guaranteed to see prices shoot.
Bitcoin (BTC) Price Update
Bitcoin continues to trade within the $10,200 range. This is despite an overnight turn up by altcoins which are recording huge gains. Led by XRP, which has surged by over 10%, altcoins are recording gains of 3% to 10%. Is the altseason back?
When Bitcoin crossed the 70% dominance mark, one of two outcomes was inevitable, Bitcoin would continue rising and cast doubt of altcoins ever making a comeback or altcoins would respond and fight for their place at the table. Now the answer is clear. The momentum with altcoins is however expected to flow into Bitcoin in the next few days and could see the asset climb back to the $10,500 range.