Washington: – The price of Bitcoin cryptocurrency jumped to over $10,000 per unit, following the forecast made by the US Federal Reserve, the central bank of the United States. There is an atmosphere of uncertainty in the investors because of the fear of the Coronavirus pandemic and the announcements made by the central banks from countries around the globe, regarding financial assistance. Against this background, the virtual currencies are attracting more people and the price of Bitcoin Cryptocurrency crossing $10,000 is believed to be the indication of the same emotion.
Following the open market committee meeting, Jerome Powell, the Chief of the Federal Reserve, informed that the interest rates would continue to remain near zero till 2022. Powell said ‘There is an atmosphere of great uncertainty regarding the future. Against this background, the Federal Reserve will use all the possible instruments in its hand, to induce stability and assurance, by bringing the economy back on track. The Chief also clarified that the bond purchase scheme offered by the Federal Reserve would continue.
The Federal Reserve announcement indicates that there will be no change in the demand and value of the USD in the near term. It is believed that this is the reason for the investors to turn to a cryptocurrency like Bitcoin. Due to this increased demand from investors rate of the cryptocurrency jumped beyond $10,000. After some time, the rates eased to $9,600. Although fluctuation in price is a normal phenomenon for Bitcoin cryptocurrency, the jump beyond $10,000 is considered to be a significant development.
The rate of Bitcoin had reached $20,000 in December 2017. But the rate had declined to 3,247 by January 2019. Thereafter, normal rate variations have been observed in the rate of Bitcoins. But against the background of the pandemic outbreak, the Bitcoin rates are seen to be rising once again. Some economists and analysts have started forecasting the rate of $15,000 by the year-end.
Last year, President Trump had issued a warning regarding virtual currencies, including Bitcoin. Trump had said that he is not a fan of Bitcoin or any other cryptocurrency and warned that the money in Bitcoin is not real. US Secretary for treasury also had said that cryptocurrencies are a threat to national security. The US defence department recently published a report, which has a serious warning that the new generation can make use of the cryptocurrency, for a rebellion against the government.
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