Bitcoin Tanks Close to $5000 After the Federal Reserve Cuts Interest Rates to 0%
The global economy doesn’t look to be in a good shape at this moment with the outbreak of the Coronavirus. On Sunday, March 15, the Federal Reserve announced cutting interest rates to 0% and said that it would pump $700 billion as a measure of quantitative easing program.
This stimulus package has been offered to curb the market turmoil caused by the COVID-19 pandemic across the globe. The Fed said: “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing.”
Along with the traditional stock markets, the cryptocurrency markets have also plunged significantly. Within 24-hours of Fed announcing the cuts, the Bitcoin price has crashed 10-15% sharply now trading close to $5000.
At press time, Bitcoin is trading 6% down at $5082 with a market cap of $92.89 billion. Bitcoin’s market cap slipped below $100 for the first time in 2020 during the last week’s market crash.