Bitcoin price spikes 10% in minutes as Federal Reserve cuts rates to zero

While Bitcoin was born independent of traditional finance, events taking place on Wall Street have become increasingly important to the cryptocurrency.

This was proven today when the Federal Reserve made history, cutting its policy interest rate to zero percent, meaning that banks need to pay nothing to borrow money from the American central bank. At the same time, the central bank also announced a $700 billion quantitative easing program, adding to the $1.5 trillion of short-term liquidity it injected into the repo market last week.

This comes shortly after the European Central Bank announced a similar QE program and after the Bank of England and the Bank of Canada also cut their policy interest rates to protect against a potential recession caused by the quarantines made to mitigate the risk of the COVID-19 spreading.

Analysts say that acts like these from central banks validate the need for Bitcoin and other alternative currencies.

Bitcoin spikes in response to Federal Reserve…