Entrepreneur Tyler Winklevoss believes that the Federal Reserve has become the main sponsor of Bitcoin (BTC).
In a tweet on August 25, in fact, the co-founder of the Gemini exchange said that Fed policies are fuelling Bitcoin’s fortunes.
Inflation growth is a Bitcoin growth
The reason for this is that, according to Winklevoss, the impact of economic measures to combat the epidemic will lead to an appreciation of Bitcoin and a depreciation of the dollar.
Today, Fed President Jerome Powell will deliver a speech in which analysts expect new inflationary measures to be announced.
Bitcoin, possessing an invariable supply and emission rate, would therefore become even more attractive.
Winklevoss wrote: „The Fed, led by Jerome Powell, continues to be Bitcoin’s main sponsor.
On Thursday, Powell will give a speech about the Fed’s plans to increase inflation.
As reported by Cointelegraph, the wait for the new Fed measures has already had the effect of increasing the price of both BTC and gold: both assets show an appreciation in line with the expansion of the central banks‘ balance sheets.
At the beginning of August, Edward Yardeni, president of Yardeni Research, said that an increase in inflation would have an „incredibly bullish“ impact on precious metals.
We still have several years to go at 0% interest rates
In the meantime, Bloomberg has reported that interest rates should remain close to 0% for another five years, but it is not excluded that the measure could be extended beyond this time window.
During the financial crisis in 2008, however, exactly the same thing happened: interest rates remained fixed at just over 0% until the end of 2015.
Former White House chief economist Jason Furman told the well-known financial newspaper: „I wouldn’t be surprised if in five years we are still at 0%:
So far the Fed has not been able to bring interest rates into negative territory, unlike what the European Central Bank has done for several years.
In May, a report claimed that Bitcoin Rush would become an obvious focus for fund managers looking for a way to cushion the impact of these financial policy measures.