At 5:00 am on March 16th, Beijing time, the Fed announced another emergency rate cut, sending a "king bomb", and the rate cut was 0, and this is the second time the U.S. Federal Reserve cuts rates urgently in half a month. The last time the Fed cut interest rates to zero was in response to the global economic crisis in 2008. Now, as the new coronavirus epidemic spreads rapidly around the world, the Fed is again doing this to provide support for the US economy.
Commenting on the Fed's rate cut again, US President Trump said, "This move is extremely pleased, and I want to congratulate the Fed. That is a big step forward, and I am glad they did."
Fed Chairman Powell said that the new crown virus has a far-reaching impact on the United States and the world, and weakness in overseas countries will drag American exports for a period of time. The US economy may weaken in the second quarter. How "economically" the economic impact will persist after the second quarter will depend on the spread of the virus. Today's actions will help the US economy and promote a stronger return to normal.
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After the US Federal Reserve announced interest rate cuts, the crypto market immediately rebounded, and Bitcoin quickly rose, up to a maximum of $ 5,900, and rose by nearly $ 600 in 15 minutes. Then it suddenly turned abruptly and quickly gave up all the gains, as if this rise never happened. Regarding the consequences of the Fed ’s interest rate cut to zero, Evergrande chief economist Ren Zeping said, “On March 16th, the Fed cut interest rates to zero urgently and launched a large-scale US $ 700 billion QE plan, all in. I just said:“ Drink thirst to quench thirst "The currency is flooded, politics is abducted by populism, and currency is abducted by politics.
The Fed's emergency rate cut soon became the hottest topic in the crypto community. See what they all say:
Dan Hedl @ danheld:
The Fed has just lowered interest rates to zero and then entered quantitative easing again. Bitcoin was built for this. Buy # Bitcoin #.
Gemini co-founder Tyler Winklevoss @ tylerwinklevoss reposts the Fed ’s interest rate cut report:
Bitcoin is a hedge against this situation. After the Fed announced interest rate cuts, the Dow futures fell to the limit and gold and bitcoin trading rose. Bitcoin is not a hedging tool for epidemics, but a hedging tool for legal systems. In the short term, sudden negative demand shocks in the global economy will affect all assets, including gold.
Blockstream Chief Strategy Officer Samson Mow @ Excellion:
Contrary to popular belief, the Fed is not without bullets. They have one more. They can buy # Bitcoin #. #Bitcoin is not a safe haven for epidemics. It is a safe haven for fiat and Fed currency printing. It's time to buy .
Stephan Livera @ stephanlivera:
The Federal Reserve has reduced interest rates to zero. If you don't understand why the world now needs alternative currencies and financial systems like # Bitcoin #, you may never understand.
Yano @ JasonYanowitz:
Reminder: We are watching the bank and hedge fund rescue plan in real time.
-$ 1.5 trillion repo market intervention
-US $ 700 billion in quantitative easing
-0% interest rate
-Eliminated bank reserve requirements
There is only one kind of hedging against this currency system-# Bitcoin # Vis @ Vis_in_numeris:
Over the past 24 hours, every reason why Bitcoin is important has been proven:
-$ 700 billion in banknote printing to enrich your wealth
-Legalization of complete part of the reserve bank
-Surveillance for "Stop New Crown Virus"
-Interest rates are close to negative numbers and costs will be saved Bitcoin official tweet Bitcoin @ bitcoin:
Ignore fiat currency and get bitcoin.
Morgan Creek founder pomp:
The Federal Reserve just launched a $ 700 billion marketing campaign for Bitcoin. They are radically cutting interest rates and printing funds into Bitcoin transactions. unbelievable.
Cryptocurrency analyst WhalePanda @ WhalePanda:
After the Fed announced negative interest rates, they waited for them to start buying $ 5 billion worth of bitcoin.
Shapeshift CEO Erik Voorhees @ ErikVoorhees
When Bitcoin goes wrong, the market starts to clear. Bitcoin is volatile but not polluted. When fiat money is in trouble, it turns on the money printing machine, which is smoother and always goes to zero. In the short term, fiat currencies are more comfortable. In the long run, Bitcoin is inevitable.
Physical cash and Bitcoin are similar in some ways. But physical cash can only be physically transferred from person to person. Bitcoin can be sent immediately anywhere on the planet. Crypto analyst Mati Greenspan:
Bitcoin reacted strongly to the Fed's statement.
paTo .. @moonshilla
The US dollar interest rate is now officially zero, and today marks the end of the fiat dollar experiment that began in 1971. The process from that time to the #Bitcoin standard today is much shorter than most people think.
From the response of the crypto community, the Bitcoin community believes that the Fed's move will benefit Bitcoin, and once again proves its advantages. We still remember the sentence left by Satoshi Nakamoto in the Bitcoin genesis block: "The Times 03 / Jan / 2009 Chancellor on brink of second bailout forbanks."
This sentence is the title of the front page article of the Times on that day, which means "On January 3, 2009, the British Chancellor of the Exchequer was on the verge of implementing the second round of emergency bank assistance." The birth of coins. In a sense, Bitcoin was born for the economic crisis.