As Trump goes against the Federal Reserve’s call for more stimulus money, Bitcoin declined as we can see in the charts today, in our latest bitcoin news.
After giving out trillions of dollars in fiscal support, the people and businesses are waiting for some more stimulus money by the president. However, Trump goes against their wishes, and right after he tweeted, the price of Bitcoin dropped. The chairman of the Federal Reserve Jerome Powell called for much more aggressive fiscal policies and more stimulus money while the Managing Director of the IMF holds similar views.
Would you look at that. Bitcoin selling off alongside the stock market on that last tweet from @realDonaldTrump.
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) October 6, 2020
However, President Donald Trump tweeted against their policies which caused a huge dump in the stock market and BTC as well. Trump shot down the calls for more stimulus money which caused the markets to continue declining. Powell told the National Association for Business Economics that the risk of “overdoing it seems smaller” than pausing the stimulus. The Managing Director of the International Monetary Fund Kristalina Georgieva, commented as well:
“We are very clear in the message we are communicating to not withdraw support prematurely. If we do so, then we risk massive bankruptcies and massive unemployment.”
The American GDP is indeed likely to rebound after the recent 30% drop recorded in the second quarter, Powell said that the recovery is far away. Indeed, both organizations believe that holding off the stimulus could lead to even worse outcomes than the last quarter. This is because the economic progress that was made this year was all thanks to the previous stimulus. The national US debt surpassed $27 trillion and now the Federal Reserve increased its asset by $3 trillion, marking a 75% increase since March.
Trump plans to put a stop on stimulus money for “until after the elections”:
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business.”
Today is a reminder that $VIX ⬆️ = $BTC⬇️
The election is just a month away. Expect more moves like this.
Trump is using the index as a lever.
— Cantering Clark (@CanteringClark) October 7, 2020
The S&P500 index crashed below $3,395 to test lows of $3,354 after Trump’s tweet. Bitcoin dropped b 1.7% to lows of $10,525 where the gold dropped from $1,900 per ounce to test the lower lows of $1,887. The VIX index which is an indicator of volatility on the market, increased by 5.44%.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]