## Macroeconomics, Federal Reserve’s expansionary monetary policies may have impacted Bitcoin’s price

The cryptocurrency market saw the price of Bitcoin pump on June 26, followed by a drastic fall on the 27th. The coin was expected to breach $14k last night but instead, it fell after reaching a value of$13,837. However, the king coin has over a longer timeframe, been showcasing strong bullish potential, which most publications associated with  Facebook’s project Libra. However, there could be other reasons for the BTC pump.

According to Messari Crypto, Bitcoin’s price may have been affected by the macroeconomic events of the past few months. It stated that the beginning of this rally coincided with the devaluation of Chinese Yuan, induced by US-China trade war fears. Also, Tether’s supply has been growing gradually ever since and according to Messari,

“The Tether supply has been expanding. Multiple sources suggest that buyers in China have been using Tether as an OTC on-ramp to Bitcoin.”

Due to Bitcoin’s low liquidity, Messari pointed out China doesn’t need a lot of buyers to easily push the market up by 400% within months. Apart from the macroeconomics at play, Messari also highlighted that the Federal Reserve’s announcement of pursuing expansionary monetary policies also may have impacted the Bitcoin trend.

” The liquidity injection from central banks pushes the price of Bitcoin higher.”

” 8/ The fact that the Bitcoin has been outperforming other cryptoassets supports this theory. Bitcoin is really the only hedge against inflationary macro environments.”

Finally, Messari noted that this rally could just be a technical one where the sellers have capitulated. Thus, a small buying pressure could have had an impact on the king coin’s price. It also noted the change in market statistics as it said,

“While this tweet was being drafted, the market cap moved by $50B, which equals the entire marketcap two years ago. Crazy how far we’ve come.” Libra and Facebook might not be the only or absolute reason driving Bitcoin’s price, but macroeconomics, Federal Reserve’s announcement of pursuing expansionary monetary policies and a technical run, all could have contributed to the rising price of Bitcoin. At press time, Bitcoin was falling by 5.39% over the day and was valued at$12,029.44 with a market cap of $213.925 billion. The 24-hour trading volume of the coin was reported to be$44.522 billion, as it noted a growth of 29.42% over the past week. At press time, it was recovering from a recent fall of 0.18% within the hour.

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