Bitcoin Price Prediction for 3/10/2016
Mar 10, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
What an interesting morning in global financial markets this Thursday! Less than an hour ago at an ECB meeting Mario Draghi announced more QE than expected by cutting the refi rate to zero and boosting monthly asset purchases to 80 billion Euro. This has cause enormous volatility in markets with the Euro getting pounded lower in early trade while equity markets around the world rally strongly above resistance. Although this might feel good for bulls in the near term, we think the bazooka approach by the ECB is a sign of just how bad things are out there in the international economy.
So what does this mean for bitcoin? Fundamentally speaking all QE is good for sound money due to debasement and eventual flight to safety. Gold, silver, and bitcoin should all benefit from more fiat money in the system given it matters not where monetary stimulus comes from due to its fungibility. An increase in the money supply in the Eurozone or Japan can easily flow into risk assets in the North America and Southeast Asia, or real assets either corporeal or virtual, so once investors realize that there is no growth and this is all we have then the hard assets shine (bitcoin included).