Do rate cuts provide reason to buy Bicoins?

Overall, Cryptocurrency traded slightly lower on Thursday, while some observers suggested that the upward movement 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 the day before.

Bitcoin, the largest alt currency 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 from 9:42 AM ET (13:42 GMT), XRP lost 2.4% to $ 0.31237, Litecoin traded 1.9% to $ 96,133, while Bitcoin Cash fell 1.5% at $ 323.27.

Although financial markets were pulling back from the fact that the Federal Reserve refused to be as aggressive in easing monetary policy as expected, Albert Silbert, managing director at cryptocurrency platform INX Limited, said the quarterly interest rate cut and his expectations for further cuts were enough reason to invest in the biggest digital currency from the market cap.

Silbert tweeted that interest rates were already down and – despite indications to the contrary by Fed chairman Jerome Powell himself – further cuts are on the way. A lower rate means less reason to hold the U.S. dollar, he said. “Buy bitcoin.”

The argument is based on the idea that low interest rates inhibit fiat currencies, reducing their purchasing power, while decentralized Cryptocurrency is generally not subject to such market manipulation.

With overall digital currency trading lower, Thursday’s move to bitcoin will most likely come as a bounce after a nearly 7% drop in July, its first monthly decline after five months of straight gains./Investing.com

 

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