0% Federal fund rate- Bitcoin prices to appreciate again?

Post conclusion of regular Federal Open Market Committee meeting, the Federal Reserve announced that it would continue to keep its key overnight interest rate close to 0%.

Additionally, the body announced that it would make no changes to its monthly bond purchases of at least $120 Billion. The Federal Reserve’s Jereme H. Powell on FOMC press conference announced that “there was a great uncertainty ahead.” The move undertaken by the US Central Bank reflects economic turmoil due to the ongoing COVID-19 pandemic. The purpose of keeping the interest rate at 0% is to make borrowing of Dollars cheaper. When cheaper interest rates are transferred to consumers, they are likely to borrow, spend and stimulate the economy.

The Fed admitted, “the coronavirus pandemic was weighing on the economic activities, employment, and inflation.” Last time when the Fed had made such an announcement it had prompted investors to go in search of safer assets to store their value of wealth. Since last September, when the Fed first made the announcement of keeping interest rate as close to zero prices of alternative currency like Bitcoin has surged by 186%.

For investors, cryptocurrencies like Bitcoin have emerged as a safe-haven asset. Needless to say, in the last 24 hours post-Fed’s announcement the Bitcoin price has also surged by 10%.

The cryptocurrency market is showing great prospects for average investors. If you want to be part of the emerging crypto community, you can invest in XcelToken Plus, an ERC-20 Token built on Ethereum blockchain,and with great use-cases. Find more about XcelToken Plus here.