Bitcoin is Designed For A Time Like Coronavirus-Induced Recession & Drastic Rate Cuts: Token Metrics Founder

Ian Balina of Coinmetrics, is vouching for Bitcoin saying the coin is independence from central banks who keep slashing rates due to coronavirus pandemic.
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Bitcoin is Designed For A Time Like Coronavirus-Induced Recession & Drastic Rate Cuts: Token Metrics Founder

Ian Balina, the founder of Token Metrics, is sounding his bullish horn and vouching for Bitcoin when the coronavirus pandemic spread, forcing central banks—and specifically the US Federal Reserve, to react aggressively to prop their banking systems.

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Fund Rates drop to 0.25% and a $900 billion Stimulus announced

Jerome Powell, Sunday, announced an emergency cut, slashing inter-bank funding rates to 0.25% and lengthened loan terms to 90 days.

“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. We will maintain the rate at this level until we’re confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals.”

The move which came as a surprise had adverse effects on the US Stock Market. The Dow Jones index fell 900 points on opening, an unexpected move.

This is despite the $900 billion stimulus that the central bank announced, saying they will embark on Treasury bond purchases and those of Mortgage-Backed Securities.

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Time for Bitcoin (BTC), Rate Cut won’t prevent Lock-downs

In the wave of this panic, Ian took to Twitter expressing his bullishness and the benefit of holding Bitcoin.

Bitcoin is autonomous, controlled by the masses, and is decentralized. The coin, despite posting huge losses in the last two weeks, near halving, remains an effective tool for not only transferring funds but for storing value.

“Morgan Stanley told the world to sell the US dollar for other currencies. Bitcoin was designed for times like this. Recession, quantitative easing, inflation. No longer do you need to depend on central banks. Take power back and become your own bank.”

At this time of panic and central banks announcing measures to either prevent further spread of the virus and to shore their respective economies, the reception of this emergency fund rate has been negative.

This disapproval by all means strengthens the case for Bitcoin and alternative coins.

The reduction of rates, one critic said, “don’t lower infection rates, they don’t make it easier to go to work, it doesn’t make normal people stop panic buying random shit, and it doesn’t make people more likely to go outside and buy stuff.”

At pixel time 12:30 GMT+3, Bitcoin was trading at $4,856, down seven percent in the last trading day.

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Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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