Since the last financial crash in 2008, QE helped global private wealth grow by two-thirds to $166 trillion, according to the Boston Consulting Group. Gold, a classic safe-haven asset, rose from $800 to $1,921 in the three years leading up to 2011 only to fall back to $1,050 by December 2015. The idea bitcoin is somehow uncorrelated with the financial mainstream is now being convincingly laid to rest, Coppola added (last week’s coronavirus shock saw bitcoin shedding close to 50 percent of its value).Ĭentral banks conducted three rounds of QE between 20, during which time the S&P 500 rallied by more than 200 percent. Related: Bitcoin Faces Another Down Day as Equities Reject Stimulus Efforts “What QE does is raise asset prices across the board and that would include new alternative assets like bitcoin,” she said. QE has helped drive up the price of bitcoin (BTC) over the past decade, according to economist and author Frances Coppola. While QE may be anathema to crypto hardliners, some experts agree the net effect on prices is positive, one way or another. Another enormous program of quantitative easing (QE) ought to benefit bitcoin, both in terms of its reputation as a hedge against centralized changes to the financial system, but also directly, as asset prices gradually rise across the board.
0 Comments
Leave a Reply. |