- Tyler Winklevoss believe an inflation boost is Bitcoin’s boost
- The Fed will deliver a speech today that could boost Bitcoin’s price
- Winklevoss believes the Fed has contributed to the growth of BTC significantly
Bitcoin News Today –Winklevoss recently said that the forthcoming Fed speech, which many believe would be about raining inflation, is only a piece of bullish news for Bitcoin. Tyler Winklevoss believes that the benchmark digital currency is getting more of its price support from the Fed itself. In a recent tweet, the co-founder of the Gemini exchange said that the policy of the Fed is and will continue to boost the price of Bitcoin (BTC).
Fed’s Decisions Boost Bitcoin’s Price
Winklevoss believes that an inflation boost is a boost for Bitcoin. His reason is that the fallout from the COVID-19 containment measures across the economy of the US will mean that the central bank mistakenly makes BTC more appealing and the USD less so. Today, Thursday, August 27, 2020, Jerome Powell – the chairman of Fed – will deliver a speech that many expect will contain an announcement that would significantly increase inflation.
Bitcoin (BTC) Price Today – BTC / USD
This move alone makes BTC, which has a finite supply and unalterable issuance, highly attractive. Winklevoss said that the Fed, under the leadership of Powell, continues to be the biggest booster of Bitcoin. He said:
“On Thursday, he will deliver a speech about how the Fed will begin targeting higher inflation.”
Anticipation around the Federal Reserve unintentionally plugging save havens like Bitcoin and gold have been building, as Bitcoin and gold saw a significant increase in value in line with rises in the balance sheets of central banks. A few weeks ago, the president of Yardeni Research – Edwards Yardeni – said that intensified inflation targets would be ‘wildly bullish’ for precious metals.
Interest Rates Might Still Be Zero for the Next Five Years
Bloomberg recently reported that interest rates should remain close to zero for the next five years. The potential for longer periods should not also be ruled out. This would be a carbon copy of the behavior seen after the 2008 Global Financial Crisis, which saw the interest rates close to 0 percent until the end of 2015.
Jason Furman – ex-chief White House economist – said that he would not be surprised if interest rates remain at zero five years from now. The Federal Reserve has so far tried to avoid negative interest rates, swerving from a practice that has been present under the backings of the European Central Bank for several years.
A few months ago, there was a report stating that Bitcoin (BTC) was a natural focus for fund managers that want to alleviate the impact of such a financial policy.