The increase in the prices of Bitcoin amid the low rate of interest by the “Federal Bank” paints the whole market in the bullish picture. The lower interest rate gives the investors in the market a free hand to invest freely. The whole cryptocurrency network rose by more than five per cent in less than the time span of 24 hours. The whole of Europe and the United States of America doesn’t seem to increase the interest rate in the near future and the press release also hasn’t been released.
Lower interest rates support the buying of assets
The Federal Reserve has also shown its interest in making the purchase program of bonds and will probably continue to do the same in the near future. There is no rush by the financial institution to increase these interest rates which fancy the investors in the market. These running rates of the cryptocurrencies also attract many sleeping investors of the markets. The sleeping investors can also be termed as investors who are not active in the frequent trading in the financial market.
The increasing prices also increased the loans by the investors
The rising gains in the market also attracted many other investors with less cash in their pocket. The investors in the market have started to borrow funds to avoid losing the opportunity of rising gains and lower interest rates in the market. It will be interesting to watch the coming reactions by the federal reserve on these increases in trading and investments.
