Bitcoin fluctuates sharply due to Fed emergency rate cut

On the evening of March 3, Beijing time, the Federal Reserve announced that it would cut the short-term benchmark interest rate by 0.5 percentage point to the range of 1% to 1.25%. This is not only the largest rate cut since the financial crisis in 2008, but also the first emergency rate cut since the crisis. Last night, Bitcoin responded to the Fed's resolution in the same way as the US stock market. It quickly rose after the resolution was announced, and then began to fall due to market sentiment. At the same time, after the U.S. stock market surged back yesterday, the price of gold was still pushed up by investors and returned to above $ 1640; U.S. Treasury bills soared, and 10-year Treasury yields fell below 1% for the first time.

We can find that Bitcoin is still not a tool for hedging the risk of macroeconomic recession. It is similar to short-term speculative gold, that is, it will be sold by investors in the event of tight liquidity of assets last week to meet additional investment categories. Margin requirements. At the same time, the market value of Bitcoin's $ 160 billion is still too small for investors to be an option to protect larger funds in a crisis. But although the price of Bitcoin has fallen for 6 days in the last 9 trading days, its hash value has reached a new high, and the number continues to climb.