Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Bitcoin Gains on Federal Reserve’s Continued Quantitative Easing Support

March 24, 2020 at 12:31 by Matt Jackson

Bitcoin prices have risen 12% in the past 24 hours, following the US Federal Reserve’s announcement that they are further expanding their quantitative easing efforts. Two bills put forward by House Democrats have also suggested the introduction of a digital dollar and, even though the proposed currency would not be run on blockchain and would be controlled by the bank, it has given the cryptocurrency market some hope. At the time of writing, Bitcoin’s price was $6,750, the highest it has reached since March 12.

The Federal Open Market Committee announced yesterday that it would continue to expand its efforts “to support the flow of credit to households and businesses by addressing strains in the markets for Treasury securities and agency mortgage-backed securities.” The announcement means that the Federal Reserve will continue to purchase bonds, as required, and that there is no upper financial limit to the aid package.

The House Democrats have also put forward two bill proposals, aimed at providing cash to individuals and families that are struggling during the outbreak. Both bills include the establishment of a digital dollar. The dollar would be controlled by banks and would effectively be placed directly into the accounts of recipients. It would not be blockchain-based but would equate to a ledger-based currency, similar in principle to Bitcoin. Many investors believe this could be the first step in greater acceptance of Bitcoin and cryptocurrency, although the digital dollar will be centralized. Those without access to traditional banking features would be able to access their money via special ATMs installed in post offices. The bills propose making payments of up to $2,000 per month to eligible adults, and up to $1,000 per month to eligible juniors. The package represents an unprecedented level of governmental support and similar schemes are being considered by governments around the world.

Bitcoin’s increase has pushed other cryptocurrencies into the green, although the world’s largest cryptocurrency leads the pack of top 10 coins, with the exception of Tezos, which has seen a marginally higher 14% gain.

At 12:30 GMT, Bitcoin (BTC) has added 10.2% to its price and is now changing hands at $6,651.90 while Ethereum (ETH) is close to posting double-digit gains, adding 9.43% to its value and trading at $138.77. Ripple (XRP) has more modest gains, increasing 5.64% to trade at $0.16. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 8.2% and 9.36% and now cost $226.26 and $176.66 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

Leave a Reply