The central banks of the world are scrambling to keep their economies from collapsing as Coronavirus fears spread quicker than the virus itself. Yesterday’s rate cut by the Federal Reserve is the first of many stimulus measures that could be a boost for cryptocurrency adoption.
Cryptocurrency markets have spent the past 24 hours or so consolidating after a strong start to the week in the wake of a stock market rebound.
The move was initiated by central bank stimulus efforts which started with the Bank of Japan on Monday. The term ‘fiscal stimulus’ is likely to be heard much more often this year as governments seek to contain the economic damage from the Covid-19 outbreak.
Cryptocurrency Narrative Growing
Very few countries are escaping the effects of this global economic slowdown, which had been predicted even before the virus outbreak. Central banks printing more money to encourage borrowing and spending and dropping interest rates into the negative territory are not the solutions. These means of mitigating economic damages have been tested and failed in the past, as anyone who remembers 2008 should agree. Coinbase chief executive Brian Armstrong has commented on the crypto narrative which could come in to play this year as a result of all this quantitative easing. In a recent tweet, he stated that “A down stock market and interest rate cuts may lead to growth in crypto this year.”![Cryptocurrency Ukraine](https://beincrypto.com/wp-content/uploads/2019/08/bic_user_friendly_Cryptocurrency_Exchanges.jpg.optimal.jpg)
The Opposite Could Also Occur
Of course, the complete opposite could happen if factories close down and supply lines are cut. Employees may be quarantined at home and it is unlikely they’ll all be on full pay. This means less money to spend and less money to invest in high-risk assets. At the moment cryptocurrency markets have largely been driven by retail investments while the institutions have sat on the sidelines or stuck to futures.![Coronavirus Bitcoin](https://beincrypto.com/wp-content/uploads/2020/02/bic_coronavirus_panic.jpg.optimal.jpg)
Top crypto projects in the US | September 2024
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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.
Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.
Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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