In an ordinary world, the biggest news would be that the market lost 50% of its value in a matter of 1-2 days. Crypto is no ordinary world. Bitcoin is no ordinary currency. And that is exactly why there is no boring day in crypto.
There is more news than the market dump this week.
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Federal Reserve slashed interest rates to ‘0’
The Federal Reserve in an effort to calm the dampening economy has taken an aggressive step by slashing the interest rates to 0. It also announced a 700 Billion dollar Quantitative Easing Program. The US dollar may lose more value to inflation in the coming decade than it has lost in the last decade. Overall, the US Dollar has already lost over 97% of its value over the course of 100 years. In the last 10 years alone, the US dollar lost 16% value to inflation. Crypto market responded swiftly to this news by pumping the bitcoin hard for close to 2 hours by $400 higher. This move from the Federal Reserve is making the government intervention weaker since it doesn’t have a lot of options to stimulate the economy if the Coronavirus doesn’t slow down or an actual economic depression sets in.
Coronavirus and Plus Token dump act in tandem to create crypto sell off
Plus Token scammers had in their possession over 180,000 Bitcoins and over 6 million Ethereum tokens. They were willing to get rid of their loot at any price. When they started dumping on the market – the coronavirus scare had already created panic. Stock market lost historic single day percentage points and the crypto market followed suit, only more furiously. Bitcoin briefly hit $4100 during the sell off and quickly found a support around $5300. We expect the dumping course of Plus scam to run until end of March while the impact of Coronavirus to run until end of May.
Coinbase along with ICE, DoJ, Walmart used Facial recognition
Crypto fans found Coinbase’s name on the list that they would despise. Buzzfeed’s investigative post exposed that ClearView’s Facial Recognition App has been used by ICE, Walmart, the NBA and Coinbase. Buzzfeed reports “For a company that maintains its tools are for law enforcement, Clearview’s client list includes a startling number of private companies in industries like entertainment (Madison Square Garden and Eventbrite), gaming (Las Vegas Sands and Pechanga Resort Casino), sports (the NBA), fitness (Equinox), and even cryptocurrency (Coinbase).”
Warm weather is expected to reduce the coronavirus impact. We surely hope so. We don’t want to miss the bitcoin halvening marathon in panic.
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