Bitcoin price is stabilizing after several days of price frenzy, which could be exacerbated by persistentDonald Trump's desire to introduce negative interest rates.
US President urges Fed to introduce negativeinterest rates, which immediately caused a wave of criticism from financiers. Most analysts are convinced that this will cause a negative reaction from the financial markets.
Negative interest rates (NIRP) obligebanks pay interest on the balance of free funds of the central bank. In fact, commercial banks are punished for withholding excess cash in an attempt to force them to increase lending to enterprises and consumers, requiring them to pay on citizens' savings.
Such a policy is already in effect in the EU. Trump believes that America needs to take similar measures.
Most financial analysts are confident thata sharp increase in the money supply can lead to inflation, reduce demand for government bonds and force investors to look for alternative assets to save values that are independent of central bank policies.
Negative bids will become another drivercryptocurrency market. Amid the collapse of the traditional economy, large investors will actively seek alternative hedging instruments, including high-risk ones. Bitcoin, which has limited emissions, in such a situation may look like a promising asset, the supply of which is falling, and the demand for which is growing.
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