After breaking the $ 6,000 mark on Monday, the BTC / USD pair continued to hold steady at around $ 6,500. At the same time, gold also soared, when market analysts said the recent sell-off had ended.
The top precious metal traded at around $ 1,572 at the time of writing, recording an intraday profit of 1.35%.
Gold's recovery was repeated in the 2008 financial crisis, Goldman Sachs stressed – cited by Bloomberg. The Fed's announcement of unlimited buying of bonds has finally pushed the price of gold higher.
According to various sources, the Fed is now embarking on a huge acquisition of $ 125 billion a day – equivalent to $ 2.5 trillion a month.
In order to protect the US economy, this plan will inject “new” dollars to flood the market and be considered the largest money-printing test in US history.
Treasury Secretary Steven Mnuchin described the liquidity provided to businesses and banks as “almost unlimited.”
In an interview with CBS on Sunday, Neel Kashkari – President of the Federal Reserve Bank of Minneapolis, said:
“The Federal Reserve has an infinite amount of cash. We will do whatever we need to do to ensure there is enough cash in the banking system. ”
Fed is becoming a “full Zimbabwe”
This has motivated both gold and Bitcoin supporters, who argue that fiat currencies are rapidly unraveling a reliable financial instrument. In a tweet following this news, PlanB – the creator of Bitcoin's stock-to-flow pricing model, has describe The Fed's latest action is turning the central bank into a “full Zimbabwe.”
He also noted that in less than 50 days, the reward for each newly created block will drop to a new low – 6.25 BTC / block.
The Stock-to-flow model predicts an average price for Bitcoin between 2021 and 2024 of $ 100,000. PlanB proved its model is still valid, despite the BTC / USD pair falling below the $ 4,000 level last week.
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According to CoinTelegraph
Translated by ToiYeuBitcoin