What’s Driving Up Bitcoin Price? Central Banks, Says FT Reporter
Marie Huillet's original article for cointelegraph.com reduced by 50%
The Financial Times' chief correspondent for international finance has argued that central banks can ironically be credited for igniting Bitcoin's price. In July, Fed Chairman Jerome Powell cut interest rates for the first time in over a decade, continuing the dovish tone set by the European Central Bank. Against this backdrop, Sender argues that the actions of developed market central banks are turning Bitcoin from a speculative instrument into a solid investment that can help to hedge big macro risks.
This - alongside other factors - has accelerated the central bank's actions to develop its own central bank digital currency, insider sources claim. According to an expert at the informal bitcoin association of China, cryptocurrency purchases have shot up 50% in recent months, Sender notes - with the caveat that the figure remains difficult to verify. Earlier this month, digital asset research firm Delphi Digital published a report arguing that central banks' monetary easing and the increasing risk of fiat currency devaluation are likely to catalyze the price of both Bitcoin and physical gold.
Anthony Pompliano, who recently stated that the European Central Bank's expected dovish turn will be "Rocket fuel" for Bitcoin - a view that is shared by those in the traditional financial sector.
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