Will Bitcoin see $10k because of Trump’s ‘negative interest’ quote?

Stock markets dropped (the S&P500 is down almost 4% for the week already) as investors come to terms with he fact that the economy won’t be rebounding anytime soon. Meanwhile Bitcoin (and the rest of the crypto market) decoupled slowly and started climbing again. Many analysts wonder whether a touch of $10,000 is in the works.

Stock Markets and negative interest

U.S. President Donald Trump’s renewed call for negative interest rates earlier in the week has made the possibility of the world’s biggest financial market adopting the Japanese and Scandinavian solution as well.

In those countries, banks have to pay the Central Bank to lend money from them, in order to stimulate the financial world to make more loans to regular people and small firms. So far, it hasn’t helped the Japanese though, who’ve implemented the measure since 2016.

Earlier this week, Trump tweeted: “As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!.”

It comes as more and more countries are parking their savings in US banks due to hyperinflation in their own countries.

Furthermore, investors are accepting that the recovery probably won’t be coming in the shape of a V-recession, aka that the economy will magically veer up after the summer. With 33 million unemployed in the US already and more pain to come in Europe where firms are laying off thousands of workers, the path towards economic growth post-corona will be quite long.

Bitcoin towards $10k?

Meanwhile more and more investors are coming to terms with the fact that crypto cannot be printed into inflation and that because of the setup of Satoshi Nakamoto’s whitepaper, most cryptocoins have a finite supply and are therefore set to rise in value.

As stock markets started their descent, Bitcoin on the other hand started creeping towards $10k again, a last touched just before the halving and this weekend’s flash crash.

whatfinger

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