Cryptocurrency Market Rallies as Federal Reserve Overweighs Bailout

The US Federal Reserve announced last night that it would launch an “unlimited purchase of debt” program, indicating that it will use comprehensive tools to save the market and the economy. Although investor confidence in U.S. stocks is still insufficient, the Fed can only narrow the decline in U.S. stocks after export. However, the cryptocurrency market is expected to be affected by related news, and an immediate response from Bitcoin happened as it regained over $6,000 US dollars.

Global stock markets have been plunged recently due to the new coronavirus pneumonia (COVID-19) epidemic, and the cryptocurrency market has also suffered a sharp decline due to reduced capital flows. However, the Fed rescued the market with “heavy doses” several times in the short term, temporarily stabilizing the cryptocurrency market. After Bitcoin crossed the $5,000 mark, the price rebounded again after the news of unlimited debt purchase yesterday.

According to CoinMarketCap data, in the past 24 hours, Bitcoin has risen from a low of $5,785, and once reached as high as $6825.98. As of 3:00 PM PST today, Bitcoin was reported at $ 6712.87, an increase of 5.12% over the past 24 hours. Almost all other top ten cryptocurrencies by market capitalization recorded a 10% increase or more. Ethereum rose 14.5% to $141.33, while Ripple rose 7.8% to $0.16.

Galaxy Digital CEO Michael Novogratz yesterday on his personal Twitter, continued to be optimistic about Bitcoin, and it is expected that its price will continue to fluctuate in the coming months. However, in the macro-environment, the market will ask why it should be created, and this year will be the year of Bitcoin.