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Bitcoin Price Jumps Over $10,000 Again As Fed Announces Rates Cut

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Bitcoin Price Jumps Over $10,000 Again As Fed Announces Rates Cut

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Bitcoin’s price rose over $10,000 on Wednesday for the fourth time in July.  After hitting $11,000 earlier in the month, the drive to surpass the $12,000 to $13,000 range was not sustainable.

The last week of July mostly saw the pioneer digital currency trading below $10,000 with a sideways trend.  It kept resisting hitting the $10,000 price for days.

The development eroded its gains for the month, which was very promising initially. Though, the price rally from the beginning of this week brought the total depreciation for the month to 8.96 per cent.

Fed’s Rate Cut

The US Federal Reserve on Wednesday reduced interest rates by 25 basis points. It is the first time in a decade since the Fed has slashed the rate. 

Chairman of the board, Jerome Powell insists the cut was not a political factor nor an impending commencement of a prolong cutting sequence. Powell, however, attributed it to global developments and softened inflation as grounds for the policy action.

But analysts perceive the 0.25 per cent cut as pressure from President Donald Trump. The US president has recently been calling for a rate cut of 50 basis point.

Interestingly, some members of the Federal Reserve Board opposed the decision to lower lending rates. Esther George and Eric Rosengren, of Kansas City and Boston, respectively preferred the standard to have remained same. 

July Price Snapshots 

The first week of July ended with Bitcoin price hitting $11,450 and a weekly growth rate of 2.81 per cent. There was much optimism as it appeared the upward price bearing in June would be sustained.

It was, however, a different picture when the price plunged 10.46 per cent the second weekend to trade at $10,256. Many percieved the drop to Donald Trump’s trashing of Bitcoin in particular and Cryptocurrency in general as a facilitator of criminal activities like money laundering and tax evasion. 

The following week recorded a 2.25 per cent pump culminating in a price of $10,599, which was a break from the previous seven days downturn.  Nevertheless, the last stretch of the month was characterised by losses.

By July 28, Bitcoin was selling at $9,552 shedding more than a thousand dollars. In seven days, it lost 9.57 percentage points. 

What is in store for the market in August? Will the Fed’s rates cut fuel Bitcoin price rally? QBITtimes will be updating our readers about the developments.

 

Frisco d'Anconia

Frisco d'Anconia is a journalist by profession and a Free Market Policy analyst. Through Africa Youth Peace Call which he founded in 1997, more than 2000 African youth were educated in Free Markets Economics and entrepreneurship. Many of these people have moved on to start businesses and institutions to advocate for market reforms in Africa. In 2007, he won the 1st Prize of the Mont Pelerin Society Essay Competition for Africans under 30 with an essay on Ghana's Telecommunication Liberalization. This man single-handedly brought Bitcoin/Cryptocurrency and Libertarianism to his native Ghana. Since 2011, he has been spreading Blockchain technologies in Ghana through his Liberty and Entrepreneurship Camps. He has written for the Cointelegraph, CryptoCoinsNews, Core Media, Bitcoinchaser and others with the pen name Frisco d'Anconia. From 2016, he is travelling through Africa promoting and writing about Blockchain technologies and its communities for the Crypto journals. So far the Cryptotraveler/Cryptovagabond as he's popularly known has been to 22 African Countries attending conferences, organising Meet-ups and promoting Blockchain Projects. He lives on, and solely earns Crypto and has no bank account. He ardently holds that Blockchain technologies are the answer to Africa's copious malaise. Currently, Mauritius is his base where he runs Qubitica LTD, a Blockchain Company as CEO, and as the Managing Editor of QBITtimes. His interests are Economic Freedom in the world, Fintech, writing, teaching, travelling and children, and has two beautiful daughters.

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