CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$46,586.00
  • ethereum
    ETH$1,445.05
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Former Fed Chair Says Negative Interest Rates Are Coming to the US: Bullish for Bitcoin?

    Former Fed Chair Says Negative Interest Rates Are Coming to the US: Bullish for Bitcoin?

    Author: George Georgiev

    Last Updated Dec 16, 2019 @ 16:51

    According to a former chairman of the U.S. Federal Reserve, Alan Greenspan, it won’t be long before negative interest rates come to the U.S. He added that gold prices have been trending upward as investors look for a hedge. Can Bitcoin thrive in these tumultuous economic conditions?

    Negative Interest Rates Headed to the US

    Alan Greenspan was the Chair of the U.S. Federal Reserve from 1987 to 2006. Commenting on the current economic situation, he stated that it’s only a matter of time before negative interest rates come to the US. 

    “You’re seeing it pretty much throughout the world. It’s only a matter of time before it’s more in the United States,” Greenspan told CNBC’s “Squawk on the Street”.

    Indeed, the U.S. 30-year treasury rate was around 1.93% on Wednesday, an all-time low. 

    US30Y. Source: CNBC

    With negative interest rates, cash deposits placed at banks incur a storage charge rather than the opportunity to receive interest income. 

    Greenspan added:

    We’re so used to the idea that we don’t have negative interest rates, but if you get a significant change in the attitude of the population, they look for a coupon. […] As a result of that, there’s a tendency to disregard the fact that that has an effect on the net interest rate that they receive.

    Bullish for Bitcoin?

    The veteran banker also noted that gold prices have been surging recently as investors are looking for hard assets such as gold, as their values tend to hold strong or increase in the long term. 

    Gold has been performing splendidly in 2019. Gold CFDs are up more than 25 percent year-to-date, and it appears that the international economic uncertainty is only fueling the growth. 

    But in these market conditions, it’s also reasonable to look to Bitcoin. As CryptoPotato reported yesterday, Bitcoin has marked higher lows every single month since February. 

    The fact that it’s not correlated to traditional financial markets is something that makes it attractive to investors in times like these. At the beginning of August, when U.S. President Donald Trump slammed another 10 percent tariff on $300 billion worth of Chinese goods, traditional markets tumbled. Bitcoin, on the other hand, gained more than $700 in less than 24 hours, potentially signaling that investors considered it to be a store of value and a hedge in tumultuous economic conditions. 

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    Read more on: Banks Bitcoin Federal Reserve United States

    About The Author

    George Georgiev View more posts by this author

    Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over two years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn

  • bitcoin
    BTC$46,586.00
  • ethereum
    ETH$1,445.05
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!