Lately, there have been a lot of indicators in the crypto market which highlights direct correlation with world events. Beginning with the US-Iran airstrike and COVID-19 scare in China in January to the ‘Black Thursday’ Crash in March, Bitcoin price action has had a strong relevance.
Reaction to the U.S. Fed Announcement
On Wednesday, the Fed announced that would keep its benchmark interest rate near zero through 2022. Fed Chairman Jerome Powell also added that the employment rates are expected to be high in the short term.
Bitcoin [BTC] price has an instant reaction to the Fed’s announcement, shooting up past $10,000. Greenspan tweeted,
This is the first time ever that #bitcoin has actively participated in a Fed event. It’s been completely motionless for several days and all of a sudden saw a rush of volatility along with the other markets. This is a clear sign of increased institutionalization in the space.
Bitcoin, on the other hand, which was “steady for days, and now suddenly it’s Speedy Gonzales.” The sudden spike in assets corrected on the opposite quickly as well, forming a short-term bump in the graphs, except for gold and US Dollar to some extend. the devaluation of the US Dollar is underway, and gold is showing appreciation in its price.
ICO Shilling in 2020
Apart from price action, there are other signals as well which have been pointing towards mainstream adoption of crypto. The days of ICO shilling are behind us and the regulators have done a good job in curbing them. However, institutions continue to find ways to issue blockchain-based tokens for their brands and services. While this may not add direct value to the crypto markets now, the interoperability and the drive towards tokenization is positive for the crypto space.
Mati Greenspan, financial and crypto analyst and founder of Quantum Economics tweeted about one of the biggest football clubs in the world, FC Barcelona.
FC Barcelona with 32 million followers is shilling an ICO.
Friends, we made it. ????? https://t.co/Wi2pKtu4A9
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) June 11, 2020
As reported earlier on CoinGape, Socios (which formed the Chiliz platform) is the digital currency partner of a number of European Football and other Sporting Teams issuing customized tokens for club merchandise, tickets and other offers. Greenspan recently joined in as their global trading advisor.
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