Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Moves Higher; Do Rate Cuts Provide Reason to Buy?

Published 08/01/2019, 11:32 PM
Updated 08/01/2019, 11:59 PM
© Reuters.

© Reuters.

Investing.com - Cryptocurrencies overall traded slightly lower on Thursday, while some observers suggested the upward move in Bitcoin was due to the Federal Reserve rate cut.

Total cryptocurrency market capitalization decreased to $275.27 billion by 11:29 AM ET (15:29 GMT), compared to $277.58 billion a day earlier.

Bitcoin, the largest alt coin by market cap, rose 0.5% to $9,995.1 on the Investing.com Index.

In other cryptocurrency trading, Ethereum fell 0.9% to $212.51 by 9:42 AM ET (13:42 GMT), XRP lost 2.4% to $0.31237, Litecoin traded up 1.9% to $96.133, while Bitcoin Cash declined 1.5% to $323.27.

Although financial markets were reeling from the fact that the Federal Reserve refrained from being as aggressive on easing monetary policy as expected, Albert Silbert, managing director at cryptocurrency platform INX Limited, said the quarter-point interest cut and his expectations for further cuts were reason enough to invest in the largest digital coin by market cap.

Silbert tweeted that the interest rate was already down and - despite indications to the contrary from Fed Chairman Jerome Powell himself - further cuts are on the way. A lower rate means fewer reasons to hold the U.S. dollar, he said. “Buy bitcoin.”

The argument is based on the idea that lower interest rates hamper fiat currencies, reducing their purchasing power, while decentralized cryptocurrencies in general are not subject to such market manipulation.

With digital currencies overall trading lower, Thursday’s move in bitcoin is arguably more likely to come as a bounce after a nearly 7% decline in July, its first monthly drop after five straight months of gains.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.