As the dust settles after “Black Monday”, it seems that the future will be even more difficult. From Monday to Thursday, the Fed injected 🇺🇸 $ 168 billion into the US economy. What surpasses the total money in the Bitcoin (BTC) market today.
Things do not seem to improve for the world economy, nor for the crypto market. Yesterday, Coronavirus finalmentewas finally declared a pandemic by the WHO, after cases in Europe tripled in a single day.
And in response to this, what has the United States done 🇺🇸? Well, he turned to a friend from 11 years ago: Quantitative Easing.
Fed injects more than all BTCs together in just one week
Essentially, the United States Federal Reserve has put more cash at stake in the economy. This in response to the worst week of the country’s stock indexes since the 2008 global economic crisis.
Bitcoin’s current market capitalization comprises just $ 145 billion at press time, according to CoinMarketCap data. So this Fed injection was only a paltry $ 23 billion in a matter of days to fight the inevitable.
The Fed comes into action amid uncertainty in the market. Traditional markets have faced a significant drop in prices lately. And not only in the United States 🇺🇸, but also in Japan 🇯🇵, Germany 🇩🇪, Chile 🇨🇱, Argentina 🇦🇷 and the world 🌍.
In a world as globalized as ours, the fluttering of a butterfly in one part of the world generates, at the speed of light, a tornado in the world financial system.
Oil fell more than 20% in a single moment on March 9. Was the biggest drop in crude since 1991.
And surely today, as both the US and European markets open, both will experience further declines due to measures against the Coronavirus pandemic in Europe and the United States. Which are, for the most part, against international trade and the demands of investors.
For example, yesterday President Trump announced the closure of the border to Europeans or those tourists who have gone to the old continent in recent months.
BTC time has come
Considering its status as a global asset, it could be argued that Bitcoin may still be a major player on this new global finance game board. It could even displace the traditional EDF.
It is now that the world’s first cryptocurrency must show its value to all of humanity. There is nothing that unites the human race more than a crisis of this kind, like that of the Coronavirus. For even if borders are closed, aid is cut and governments take all possible measures, we all unite.
The human race normally does not have much in common. Separated either by skin color, religion, nationality, sex or political thought. A person in Europe does not normally lose sleep over a person in Africa and vice versa. But now we all suffer from the same thing: we are facing a pandemic.
Bitcoin was invented to serve as a fighting weapon for humanity in these types of cases, where a global economic crisis is brewing. Where African, Asian or Latino will be affected, regardless of their origin.