Peter Brandt: coronavirus can determine the future of bitcoin

The current crisis in the economy may become a kind of springboard for bitcoin, said Peter Brandt, a well-known trader and technical analysis specialist. Quotes of the first cryptocurrency showed a sharp increase after the announcement of the US Federal Reserve System on the adoption of unprecedented measures to stimulate the economy in the context of the total spread of coronavirus infection. In particular, the regulator lifted restrictions on the purchase of government bonds and securities of US mortgage agencies and reduced the key rate to 1–1.25%.

So, the analyst predicts the first cryptocurrency “big problems” if it cannot prove itself during the fall of the traditional financial market. “Now for Bitcoin, the perfect storm. If we don’t see the rally, digital assets will have big problems, ”said Peter Brandt.

It is worth noting that many market experts adhere to this opinion, believing that the appearance of a huge amount of cheap money will become an undoubted catalyst for inflation, and investors will prefer to transfer their funds to more stable assets, which cryptocurrencies can become.